| View this article at: http://www.macnn.com/articles/08/10/01/citigroup.vs.g.sachs/ |
Wednesday, Oct 01, 2008 9:40am
Citigroup, Goldman Sachs conflict on Apple stock |
New analysis of Apple's difficult financial situation has yielded two significantly different views. Richard Gardner of Citigroup has cut his price target for Apple stock by more than $100, down to $170 from $287. Blame is laid on a 3 percent decline in industry computer sales, and a 12 percent drop in music revenue throughout 2008. Apple's guidance, normally thought by analysts to be too conservative, may in fact prove accurate for the fourth quarter, Gardner suggests.An EPS of $5.29 on sales of $32.68 billion is now predicted for FY08, which is just coming to a close, while FY09 figures are expected to produce an EPS of $5.43 off of $35.2 billion. Because Apple is set to grow, Gardner is still issuing a buy rating, with the observation that the company will likely outperform most rival computer, electronics and phone makers. |