Lehman Bros upgrades Apple on valuation, likelihood of Mac market share gains

“Apple Inc. was upgraded to overweight from equal weight at Lehman Bros., due primarily to valuation,” Tomi Kilgore reports for MarketWatch.

“Analyst Harry Blount said the stock’s recent pullback “provides an attractive entry point and a favorable reward vs. risk ratio in front of an anticipated product cycle in 2007.” Blount also sees lowered component pricing leading to additional potential operating margin expansion and the likelihood of PC market share gains,” Kilgore reports.

Full article here.

“Separately, Morgan Stanley analyst Kathryn Huberty reiterated her buy rating on Apple shares, saying the market is underestimating the likely success of the iPhone,” Abby Deveney reports for MarketWatch.

Full article here.

Related articles:
Georges Yared: ‘This is the time to accumulate shares of Apple, Inc.’ – February 20, 2007
5 compelling reasons to buy Apple stock – right now – February 15, 2007
Citigroup upgrades Apple Inc. from ‘hold’ to ‘buy’ – February 12, 2007
Needham raises price target on Apple Inc. to $135 from $115 – January 29, 2007
Slew of analysts up price targets on Apple Inc. – January 18, 2007

4 Comments

  1. Someone correct me if I’m wrong, but didn’t I read that Apple’s stock only went down something on the order of 5% a couple of days ago? So a 5% drop now makes it an “attractive entry point”? Why wasn’t the stock price an “attractive entry point” two weeks ago when the stock ROSE to what it FELL to on Tuesday?

    My low opinion of analysts remains unchanged.

  2. What’s this stuff about PC market share gains ?

    Many other analysts are saying that Apple is likely to temporarily lose market share in the next few months because PC buyers had been holding off buying a PC until Vista was out. Now it’s released, they are expecting a surge in PC sales, which will have the effect of making Apple appear to lose market share by comparison.

    It’s clear that they can’t all be right on this occasion, but on plenty of previous occasions we’ve seen that absolutely none of them were right.

  3. Besides the 5% drop on Monday, the stock is down from it’s high of 97.80. That might be the attractive entry point he talks about.

    Unfortunately, the market got spooked today. Everything is dropping in premarket.

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