May 18 (Reuters) – Billionaire investor Carl Icahn said
Apple Inc’s stock was “still dramatically undervalued”
and that it should be trading at $240, up from his earlier
estimate of $216.
Apple shares rose as much as 1.4 percent to $130.32 by
midday on Monday. The stock has gained more than a quarter since
October, when Icahn first said it was undervalued.
Icahn said on Monday it was time for the iPhone maker to
execute a much larger share buyback.
Apple boosted its share repurchase program in April to $140
billion from $90 billion announced last year and raised
quarterly dividend by 11 percent to 52 cents per share.
“It is our belief that large institutional investors, Wall
Street analysts and the news media alike continue to
misunderstand Apple,” Icahn wrote in an open letter to Chief
Executive Tim Cook. (bit.ly/1QXgpia)
Icahn, one of Apple’s top 10 investors, has long urged the
world’s most valuable company to buy back more shares and boost
The investor said in February that he owned about 53 million
shares, now worth about $6.8 billion.
“Apple is poised to enter and in our view dominate two new
categories (the television next year and the automobile by 2020)
with a combined addressable market of $2.2 trillion, a view
investors don’t appear to factor into their valuation at all,”
Icahn wrote on Monday.
(Reporting by Anya George Tharakan in Bengaluru and Sam
Forgione; Editing by Saumyadeb Chakrabarty)