We seem to be in the midst of one of the most controversial periods in Apple’s stock in the last 10 years with what appears to be a sudden wave of pessimism overtaking the largest and most owned stock in the world. There is no shortage of publicity that since September 21st, shares of Apple have fallen over 20% vs. a drop in the NASDAQ of 9% over the same time frame. The first reason simply seems to be a loss of momentum with two sub-consensus EPS reports in a row – and then December quarter EPS guidance well below consensus. Technical levels and tax-selling seem to be playing roles as well. From a fundamental standpoint, we continue to view Apple as one of the clearest beneficiaries of the shift in computing toward mobile devices with the iPad and the iPhone. From a valuation standpoint, the company trades around 10x 2013 EPS (8x excluding cash), which puts it cheaper than the likes of IBM at around 11x
Reitzes price target for AAPL remains unchanged at $800.
More analysts’ opinions in the full article here.
Analysts reiterate $750-$950 price targets on Apple stock – November 14, 2012