updated 11:40 am EST, Mon November 7, 2005
AAPL downgraded to \'hold\'
today downgraded Apple's stock, saying that the stock price had hit the analyst firm's target of $61. Having doubled its target over the past year, analyst Charles Needham downgraded Apple stock from a 'buy' to a 'hold': "During the past year, in response to the introduction of breakthrough new iPods and Macs and outstanding financial results, we’ve doubled our price target. Increases in the share price followed closely behind. The risk in our downgrade is that the frenetic pace of innovation at Apple could present new opportunities, which could trigger an upgrade at a price that’s much higher than it is today." The company said that a higher-than-estimated Windows migration rate could also lead to continued strength in the stock and continued increases in the stock price. In addition, Needham noted the continued success of Apple's retail stores, with over 50 million people visiting the 124 retails stores.
"Weekly visitors per store were up 46% in fiscal 2005, while same-store sales grew 45%. Reflecting the accelerating migration of Windows users to the Mac platform, Macintosh sales in the stores registered a 45% sequential increase in September."