NEW YORK (TheStreet) -- After The Wall Street Journal reported that Apple is developing an electric vehicle, analysts at a number of firms, including Piper Jaffray and Barclays, were upbeat about the news. BACKGROUND: Apple has "several hundred" employees working secretly to create an Apple-branded electric vehicle, The Wall Street Journal reported on Friday, citing unnamed sources. ANALYST OPINION: Although it appears that Apple is serious about building an electric car, the product is unlikely to be unveiled for five years, Piper Jaffray analyst Gene Munster wrote in a note to investors today. Still, investors will view the car, along with Apple Watch and Apple TV, as highly promising upcoming projects, Munster believes. As a result, speculation about the car will boost the multiple of Apple's stock, the analyst contended. He kept a $160 price target and Overweight rating on the shares. Meanwhile, Barclays wrote that launching a car would make sense for Apple, since cars are "becoming a natural extension of the connected home and mobile ecosystem," according to the firm. Moreover, given the tech giant's "leading brand and style," it may be well-positioned to succeed in the auto market, Barclays believes. There may be a defensive element to Apple's potential foray into the auto market, as the company could be looking to prevent Google's , Android from becoming the dominant operating system in cars over the long-term, Barclays believes. In its own note, Cantor said it believes that Apple is well-positioned to use its hardware design and software prowess, along with its ecosystem, to create effective products in new markets like autos as more things become computerized. The firm keeps a $160 price target and Buy rating on Apple shares. PRICE ACTION: In early trading, Apple rose 1% to $128.43. Shares of Tesla Motors , a leader in electric car technology, are little changed near $203.64 in early trading. Reporting by Larry Ramer.
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