“Piper Jaffray’s Gene Munster, reiterating an Overweight Rating and a $900 price target, writes that ‘core issue for investors is what Apple’s true margin profile will look like moving forward,’” Ray reports. “Munster thinks margins will stabilize: ‘Our analysis of Apple iOS product margins (components only) suggests that the margin profile for Apple is unlikely to significantly change the company’s overall margin profile despite commentary to the contrary on the Sep-12 earnings call.’”
Ray reports, “William Power of R.W. Baird reiterates an Outperform rating on Apple and a $750 price target, writing that ‘Though obvious from the stock action, recent investor meetings and conversations confirm that investor sentiment has turned decidedly negative. Determining a hard bottom is difficult, though we would note the stock is now trading near its recent P/E trough of roughly 10x forward earnings, with fear creating opportunity.’”
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