Look, Apple controls just 3% of the world cell-phone market and 4% of percent of personal computers, yet Steve Jobs continues to push his firm past those industries’ biggest players: Dell , Microsoft , Nokia and Motorola . And the company’s still converting nonbelievers on the regular. The end result? A quarterly beat that was 50% higher than Wall Street’s expectations.
Cramer was so bullish on Apple that he predicted next fiscal year’s earnings would reach $13 a share, up from his earlier $12 call. As for the price target, he assumed money managers would be willing to pay one time the growth rate for a high-quality growth stock like this. The equation then would look like this: the growth rate, 30%, times $13 a share equals $390. Why $300, though?
“Because you would never believe me,” Cramer said, “so I lopped off 90 bucks to be more realistic.”
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