“The love-hate relationship that investors have always had with Apple Computer now has analysts taking a more cautious stance at a time when the company’s stock revisited levels not seen in nearly four years,” Rex Crum reports for CBS.MarketWatch.com.
“The latest take on prospects for the Cupertino, Calif.-based company came Tuesday from Banc of America Securities analyst Keith Bachman, who said he thinks the run of good luck that Apple has enjoyed this month could be over because it was mostly due to sales of the iPod digital music player,” Crum reports. “Between March 1 and March 12, Apple’s shares climbed 15 percent, to $27.56. The last time the stock was in that range was in August 2000. But the stock has pulled back in recent sessions and traded recently at $25.79, down 2.5 percent.”
“While much of the tech sector has also been in retreat of late, Bachman said Apple’s shares might well have reached the upper limit of their valuation for the time being due to weak sales of G5 PowerMac computers,” Crum reports. “For its fiscal first quarter ended Dec. 27, Apple shipped 206,000 G5 computers, short of many analysts’ estimates. Bachman estimates that Apple will ship 195,000 G5 PowerMacs in its current quarter.”
“Apple’s iTunes has even come up against some resistance, although its sales numbers would be the envy of anyone company playing in the online music market,” Crum reports. “It might… be difficult, if not impossible, for Apple to catch up with its own goals of selling 100 million songs by the first iTunes anniversary on April 28. Jobs said 2.5 million songs are being downloaded every week, and at that rate, iTunes would reach about 68 million songs by the time the service hits the one-year mark.”
Full article here.
AAPL shares are trading at $25.70, down 0.75 as of the posting of this article. AAPL quote here.