“Analyst firm Piper Jaffray believes [Apple (AAPL)] stock is actually trading at a discount,” MacNN reports. “‘We believe many investors generally feel that Apple shares have a high relative valuation and, therefore, the Street remains split between those that believe shares deserve to continue to trade at a premium and those that believe shares should trade lower due to declining momentum,’ wrote Piper Jaffray senior analyst Gene Munster in a research report obtained by MacNN. ‘Apple is a unique company in that its business stretches into both hardware and software. As such, we believe a comparative valuation group should consist of Apple’s competitors in both hardware and software.'”
MacNN reports, “The analyst firm also believes the recent settlement between Apple and Creative, which resulted in a one-time $100 million payment to Creative to resolve outstanding lawsuits, is a ‘drop in the bucket’ to relieve possible worries about future injunctions or appeals in court.”
More in the full article here.
Creative Tech shares surge in early trading, Apple also up – August 24, 2006
Apple & Creative settle: Apple pays $100M for ‘Zen’ patent, Creative plans iPod accessories – August 23, 2006