Apple's (NASDAQ:AAPL) Will Continue to Rise on Growing Business Says Brigantine

Citing the expected solid numbers in the latest quarter and increased guidance in distribution, Brigantine is among those who see Apple reaching the $400 a share mark.

Brigantine says, "Given the expected solid performance in the December quarter, and a bright outlook based on increased distribution dictated in the company's March quarter guidance, we see Apple's shares continuing to reflect the company's growing business. Less the $55 per share in net cash, Apple's valuation at about $291 represents 15.7x our $18.50 FY 2011 (Sept) EPS estimate. We are setting a 12-18 month $400 price target based on 16.5x our $21.00 FY 2012 and adding back the $55 per share in cash (likely a larger per share amount in 12 months). We believe the shares could be accorded an expanding valuation multiple on consistently strong growth and increased share in computers, phones, and peripherals especially at the intersection of computing and wireless connectivity."

Brigantine Advisors maintains a "Buy" rating on Apple (AAPL), which was trading at $347.62, gaining $1.94, or 0.56 percent, as of $1:48 PM EST. Brigantine has a price target on Apple of $400.