updated 09:25 am EDT, Mon October 2, 2006
AAPL rated "hold" by Citi
Citigroup today cut its rating on Apple stock to "hold" from its previous "buy" rating, saying that the company's growing stock price is making it less attractive. Citing valuation concerns, the firm told clients "it sees little potential for revenue upside versus consensus in the third or fourth quarter of the year. It said gross margin upside should yield 4 cents to 6 cents of earnings-per-share upside in both quarters but that this is largely priced into the shares," according to MarketWatch. In addition, Citigroup said "recent checks" suggest that Apple is unlikely to introduce a new video iPod with a larger screen and "virtual click wheel" before the peak holiday season, as the broker had hoped, according to the report.