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AAPL Stock: 98.15 ( -0.23 )

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Analysts cut Apple stock forecasts following Q1 results

updated 12:14 pm EST, Thu January 24, 2013

Optimism remains despite reigning in expectations

Analysts at several financial firms have cut their stock targets for Apple following the company's Q1 results. Piper Jaffray has reduced its target from $875 to $767, while Wells Fargo is now aiming for between $600 and $630, and Deutsche Bank is targeting $575. RBC Capital Markets has shifted from $725 to $600, and Canaccord Genuity has dropped its prediction to $650. Topeka Capital Markets has adjusted from $1,111 to $888.

The same analysts are however generally optimistic about Apple's future. Piper Jaffray, Morgan Stanley, JP Morgan, and Evercore are all maintaining "overweight" ratings for the stock; Wells Fargo and RBC are sticking with "outperform" evaluations. Some firms, including Needham & Co. and JP Morgan, have left their price targets unaltered.

Piper Jaffray analyst Gene Munster suggests several reasons for bad investor reactions, which has forced the current price of Apple stock down over $50 in Thursday trading alone to about $460. He notes that Q1 iPhone sales were below expectations of around 50 million, and that the company has switched to a new, more realistic financial guidance approach leaving little chance for "wild upside." The most recent guidance may also hint that gross profit margins will be down sequentially in Q2. Other analysts disagree though, such as JP Morgan's Mark Moskowitz, who says the new guidance method is "not much of a change and could restore beat-and-raise potential to the model."




by MacNN Staff

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Comments

  1. pairof9s

    Mac Enthusiast

    Joined: 01-03-08

    It's getting hammered!!

    APPL is down over 10% right now. The market has not taken these "slips" very well...yet Apple made billions $$ last qtr. I guess for those of us who bought in 2000 when we were taking a chance w/ a company barely making $2 billion a quarter, this just is not that bad of a report.

  1. blahblahbber

    Banned

    Joined: 02-01-05

    however you look at it. Stock value is not important for crApple. And if it's not important to them, then it shouldn't be for you or anyone else.

  1. hayesk

    Professional Poster

    Joined: 09-17-99

    blahblahbber is actually right.

    And Apple shouldn't be concerned about stock price. The market has an insatiable need for growth rates, as opposed to growth, or simply maintaining a solid business. It's a lot easier to grow 20% from $50 million than from $50 billion. But Wall Street expects the same rate of growth regardless because they fail or refuse to understand the difference between a rate and an amount. It's unsustainable.

    It's BS like this that makes me hope Apple goes private again some day. Then they don't have to answer to idiot analysts and shareholders.

  1. Flying Meat

    Dedicated MacNNer

    Joined: 01-25-07

    Thanks, hayesk. I've felt that way since, well, forever. :thumbsup:

  1. pairof9s

    Mac Enthusiast

    Joined: 01-03-08

    @blahblahbber: Actually, that's not true. I own their stock...I do make money off it; not what Apple sells. I agree Apple shouldn't be and isn't worried considering their war chest and popular product line...not your insinuated sarcasm. In fact, I wasn't even complaining but bemusing at how people reacted so drastically to such a report as that given yesterday. Nonetheless, it's wrong to think that I shouldn't be concerned at the drop when it's stock I own...Apple's or otherwise.

  1. blahblahbber

    Banned

    Joined: 02-01-05

    Originally Posted by pairof9sView Post

    @blahblahbber: Actually, that's not true. I own their stock...I do make money off it; not what Apple sells. I agree Apple shouldn't be and isn't worried considering their war chest and popular product line...not your insinuated sarcasm. In fact, I wasn't even complaining but bemusing at how people reacted so drastically to such a report as that given yesterday. Nonetheless, it's wrong to think that I shouldn't be concerned at the drop when it's stock I own...Apple's or otherwise.



    I say what I mean.

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