Cramer fires back at Apple analysts ‘making a big mistake’ – CNBC
Aside from the fact that Apple could add as much as $40 per share if the government allows its massive overseas cash hoard to repatriate to the U.S. under President-elect Donald Trump, its stock is also insanely cheap at just 10 times 2018 earnings projections.
Cramer was also willing to bet that the company’s service stream, with more than 1 billion users, could be gigantic.
The downbeat analyst projections affected more than just Apple, too. Last week, there were many downgrades of bank stocks, which have roared since Trump’s surprise victory. Regional banks and major banks have been downgraded, as analysts say they have been overvalued and are ahead of themselves.
“Despite their monster moves, the banks stocks are so far behind the rest of the market it is almost laughable,” Cramer said.
Cramer failed to see how banks could be ahead of themselves when they are nowhere near where they used to be, especially with the expectation that Trump will ease regulation, there will be rate hikes. The group is a buy, not a sell, Cramer said.
Goldman Sachs also downgraded Caterpillar to a sell from a hold because of “extended commodity infrastructure downturn” back in January, and provided a price target of $51. Caterpillar closed at $92 on Monday.
“I don’t want to fight that tide of potential good news for Apple or for any of these stocks,” Cramer said.