NEW YORK (
Jeffrey Gundlach believes that
(AAPL - Get Report)
shares are likely to see $500 "fairly easily." However, $700 may not happen ever again.
In an interview on
, Gundlach confirmed that DoubleLine still owns Apple in one of its equity portfolios. Gundlach noted that Apple is offering investors income in a world starved for yield, as central banks have cut interest rates in an effort to stimulate growth.
Gundlach also noted that shares of Apple seem to be forming a base, but that Apple would no longer have the performance it did in the past. "But I think Apple goes to $500 anyway," Gundlach said during the interview. "It just seems too cheap to me given the kind of cash flow they have. I'm not sure we're ever going to see $700 again, but it seems like $500 should be a fairly easy place for it to go."
Apple is offering a 2.7% yield on its common stock, above the 1.95% yield on the
last month that DoubleLine owned Apple. Gundlach had previously been short Apple, saying
Apple would fall to $425, which it did, and then some.
Shares of Apple were slightly higher in Tuesday trading, up 0.11% to $451.23.
Written by Chris Ciaccia in New York