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AAPL Stock: 560.27 ( -5.05 )

Analyast downgrades AAPL to 'hold', cites $70 target

updated 09:50 am EST, Fri December 3, 2004

AAPL downgrade


Needham & Co. today from "buy" in a valuation call, according to CBSMarketWatch.com: "'With all of the possible contributors to Apple's share price factored in -- the iPod, a possible flash-based iPod and the widely discussed halo effect -- our valuation model produces a fair price of $70 per share,' analyst Charles Wolf told clients. With the stock now trading close to that level, Wolf believes most of the upside is now captured in the share price. Apple shares closed down $2.58, or 3.8 percent, at $65.21 on Thursday.'"


by MacNN Staff

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  1. VadersCape

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    Joined: Mar 2004

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    12/03, 09:59am | report spam | Reply |

    In other words ...

    "... our valuation model produces a fair price of $70 per share,' analyst Charles Wolf told clients."

    In other words, our guess is $70 per share.

  1. macimmortal

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    Joined: Aug 2001

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    12/03, 10:26am | report spam | Reply |

    What a joke...

    ...if they really saw a price target of 70, they would have issued a BUY rating. They just want to push the price down so that they can buy it cheap.
    Lame imnsho.

  1. Zaren

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    Joined: Aug 2001

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    12/03, 10:50am | report spam | Reply |

    ouch

    down below 62 now... time to sell, or sell short, since it looks like we're still going down from here.

  1. njfuzzy

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    Joined: Apr 2001

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    12/03, 10:58am | report spam | Reply |

    My guess

    My guess is AAPL will reach $75 by spring. This time next year, it will be backing off from a high over $100.

  1. shawnce

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    Joined: Nov 2000

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    12/03, 11:01am | report spam | Reply |

    It makes sense...

    Apple's stock has been running up faster then it really should have, it has been trading a prices that are closer to earnings 1-2 years down the road then anything in the near term.

    Apple is doing very well but folks got the stock overly hot. It would be good to lose some steam at this point to guard against drastic drops as one gets into very high P/E ratios.

    Expect to see profit taking related volume and hopefully a settling of stock price.

  1. jimothy

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    12/03, 11:38am | report spam | Reply |

    Well said, Shawnce!

    Swance, I think your point is dead-on, and one that Mac fans are missing. These analysts are saying Apple continues to be a great company with plenty of room for growth, but its valuation has gotten ahead of itself. The market is not bearish on Apple, and is certainly not back to calling it "beleaguered," but the analysts do realize that much of the good news has already been priced into the stock. In other words, there is little upside potential left for further appreciation.

    I'll agree with you, as well, that it's good to see the price come down somewhat now and then stabilize rather than continue its upward climb to extreme P/E ratios. If that were to happen, one bit of disappointing news (such as lowered revenue or earnings projections) could devastate the stock, as we saw in 2000 when AAPL lost over half its value in one day.

    Folks, its great to see Apple and its stock doing so well, but even with all the rosy news, the company needs at least a year or two to grow into its current valuation. If it keeps up the good work, healthy profit margins, and, most importantly, manages to grow Mac market share, the stock may look like a bargain at today's prices. But that will take years of steady execution.

  1. Feeling_Macish

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    Joined: Mar 2004

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    12/03, 12:39pm | report spam | Reply |

    ANAL_ysts still messing

    with stock prices every time they open their mouths. When will people truly ignore them?

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