Wall Street is practically unanimous in its verdict on the formidable tech giant Apple (AAPL) as Steve Jobs announced his resignation as CEO: The 19 major analysts who track Apple are staying bullish on Apple’s stock. Jobs announced on Wednesday evening that he was stepping down as chief but will remain as its board chairman. Chief Operating Officer Tim Cook is taking the CEO position.
“Although we value Steve Jobs vision and strategist, we believe that he has created a superior organization backed by talented engineers and managers who can execute product roadmaps and deliver growth,” says C. Montevirgen, equity analyst at Standard & Poor’s who follows Apple. He is retaining his “strong buy” recommendation on the stock, with a 12-month price target of $455 a share.
Jobs’ long battle with pancreatic cancer is already widely known. “We also think investors have been anticipating the management transition, evidenced by Apple’s market price-earnings multiple of 10.9 times our calendar 2012 earnings-per-share estimate ($27.64 a share),” says Montevirgen. The analyst still expects earnings to grow over 60% and nearly 20% in 2011 and 2012, respectively. “We believe the stock is undervalued,” he adds.
Full story: Gene Marcial – Street Beat – Forbes.