Standard & Poor’s cuts Apple price target from $83 to $68

Standard & Poor’s Equity Research lowered its price target on Apple Computer (AAPL) from $83 to $68, citing valuation concerns and reiterated a “hold” rating on the stock. S&P’s new target price reflects a lower multiple on the fiscal 2007 revenue estimate due to “slowing sales related to maturing of the iPod and MP3 player market, and margin pressure as iPod becomes a larger percent of Apple’s sales mix,” S&P analyst Megan Graham Hackett wrote in a research note Tuesday.

Advertisements:
Apple’s brand new iPod Hi-Fi speaker system. Home stereo. Reinvented. Available now for $349 with free shipping.
Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
MacBook Pro. The first Mac notebook built upon Intel Core Duo with iLife ’06, Front Row and built-in iSight. Starting at $1999. Free shipping.
iMac. Twice as amazing — Intel Core Duo, iLife ’06, Front Row media experience, Apple Remote, built-in iSight. Starting at $1299. Free shipping.
iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.
iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
Connect iPod to your television set with the iPod AV Cable. Just $19.

Related article:
Lehman cuts Apple price target from $80 to $73, UBS cuts Apple from $100 to $95 – April 04, 2006

16 Comments

  1. After reading this, make a change from $68 to $200.00

    During the Leopard install, you are given the option to create specific partitioning to accommodate M$ Vista and Linux. Reformatting your HD is not required. Depending on your processor and RAM, all OS’s can run simultaneously & independently. A (minimum) 150 GB HD is required (250 GB is recommended), and 2 GB RAM (minimum) should you wish to run more than one OS. Dual processors are required for optimum performance, though this may change in 10.5.1 or 10.5.2.

  2. This is great, LOL. Now that the iPod hype-fest is past tense it will be easy to delineate the TRUE value of Apple vs. the fad-induced stock run. Additionally, Apple’s not had to take on a new Microsoft OS release since, oh 2001’ish?

    So far I see lots of sellers, but not many takers.

  3. I still believe Apple will show significantly more growth than its competitors, making it an attractive stock for investors in the longer term. people got too used AAPL rocketing up everyday for three years.

  4. No MDN comment because when it was around $85 MDN was banging the drum for all of us to invest because it was going over $100 and then split.

    To all who invested at over $65….sorry, this show appears to be over for any further fast runups, the stock buying crowd has moved on to a new stock.
    Apple will bump around this level $50 – $70 for the next 6 plus months.
    If Leopard comes out on time and has something really exciting in it (like the rumored booting of Windows – which I doubt) then the stock will jump.
    But the iPod market is maturing (who doesn´t own one or two?), problems with Intel chips (delivery, performance), fewer buying old PowerPC based computers, no pro software available to run on Intel Macs, Steve distracted by Disney fun, competition against downloading movies, possible delay of Leopard, etc., this means it is not the best of moments for Apple.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.