Carl Icahn: Apple shares are undervalued

<p>Shares in Apple have been snapped up by billionaire investor Carl Icahn.</p>

Billionaire investor Carl Icahn has stated that stocks in Apple are currently undervalued.

He explained that he believes the firm ought to carry out a bigger share buyback, having previously announced it would return $100 billion (£65 billion) to shareholders by the end of 2015.

In an interview with Reuters, Mr Icahn claimed that improving this buyback to $150 billion could lead to Apple shares increasing in value to $700.

This would represent a massive boost to the current share price of the firm, which is below the $500 mark and has been for some time.

In response to the comments made by the investor, Apple said in a statement: "We appreciate the interest and investment of all our shareholders. "Tim [Cook, Apple chief executive] had a very positive conversation with Mr Icahn today."

When Apple announced it made $6.9 billion (£4.5 billion) in profits for three months to June last month, its stocks rose in value by around five per cent.

Shannon Cross of Cross Research explained strong demand for the Apple smartphone has reassured investors that the future of the firm is bright.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.