“Needham & Co. on Friday downgraded shares of Apple Computer to ‘hold’ from ‘buy’ in a valuation call. ‘With all of the possible contributors to Apple’s share price factored in — the iPod, a possible flash-based iPod and the widely discussed halo effect — our valuation model produces a fair price of $70 per share,’ analyst Charles Wolf told clients. With the stock now trading close to that level, Wolf believes most of the upside is now captured in the share price. Apple shares closed down $2.58, or 3.8 percent, at $65.21 on Thursday,” Susan Lerner reports for CBS MarketWatch.
Apple is currently trading at $62.70, down $2.51 or 3.85% in NASDAQ trading.
MacDailyNews Take: This is “normal.” Apple may have been going too fast, too high for the market’s taste lately. Everything corrects eventually. Investors will be watching Apple closely to see when the time is ripe to buy again.
Related MacDailyNews articles:
Smith Barney raises estimates while lowering rating on Apple from ‘buy’ to ‘hold’ – December 02, 2004
Investors picking some Apple profits near year end – December 02, 2004