Carl Icahn: Apple worth $240 a share

Apple has popped back on the radar of billionaire investor Carl Icahn.

In a letter sent to Apple CEO Tim Cook Monday, Icahn says 

shares of Apple are still “dramatically undervalued” at $130 a

 share as of midday trading. His price on Apple shares? $240.

Icahn cites Apple’s move into two new markets: television by

 next year and cars by 2020, which he says boast a combined 

market of $2.2 trillion.

Multiple reports have surfaced this year of Apple’s interest in 

both sectors. The tech giant is expected to share details later

 this year of a streaming TV service connected to a revamped 

Apple TV set-top box. The service will reportedly feature 25 

channels, including top broadcasters ABC, CBS and Fox.

The company is also making huge gains in China. FBR 

Capital Markets analyst Daniel Ives predicts China will pass 

the Americas and Europe as Apple’s biggest market by their 

2017 fiscal year.

Meanwhile, Icahn is once again urging the tech giant to use all

 that free cash (which currently sits at $194 billion) for a much 

larger buyback plan.

“Apple has clearly demonstrated a track record of excellence 

and success when entering new categories,” reads Icahn’s 

letter to Cook. “We expect this to continue with the Apple 

Watch, the television, and the car, and the world will look 

back on today’s undervaluation as a fascinating example of market inefficiency.”

This isn’t the first time Icahn has pressured Apple into 

increasing share buybacks. The investor has been pushing for 

a larger buyback since 2013, when he disclosed a “large 

position” in Apple.

In a February letter on his personal website, Icahn said he 

holds 53 million shares of Apple valued at $6.5 billion. He also 

predicted Apple would be the first company to reach $1 

trillion in market value.

Last quarter, Apple announced it boosted its buyback plan to 

$140 billion and hiked its quarterly dividend by 11%.

Follow Brett Molina on Twitter: @brettmolina23.