updated 09:50 am EDT, Wed September 27, 2006
Analyst forsees pullback
Senior analyst Shaw Wu of American Technology Research today removed Apple from the firm's Focus List due to increased hype over Apple's expected cellular handset. "While we remain long-term positive, we believe Apple shares may reflect too much near-term cell phone optimism," wrote Wu in a research note obtained by MacNN. Apple shares have appreciated 15 percent vs. 3 percent in the NASDAQ since the firm added the Cupertino-based company to its Focus List roughly three weeks ago. "We would not be surprised to see a near-term pullback and would be aggressive buyers at lower levels (low-$70s, high-$60s)." The analyst also commented on Microsoft's new Zune media player, pointing to the company's possibly forsaken PlaysForSure Digital Rights Management (DRM), as well as its "partners" in the digital music industry. "We believe the unexpected side effect will be further fragmentation in the Windows Media market, creating more confusion to consumers," said Wu. The firm maintains its "Buy" rating on Apple shares with a $91 price target.