Apple upgraded by AmTech Research from ‘Neutral’ to ‘Buy’ a mere 13 days after ratings cut

Apple this morning has been upgraded by AmTech Research analyst Shaw Wu from “Neutral” to “Buy” a mere 13 days after the analyst cut his rating on the stock to “Neutral” from “Buy” on so-called “valuation concerns.”

Since April 22, the day the Wu that cut his rating, Apple shares have gained $24.80, or 15.5%, rising from $160.20 at the close on April 22 to $185 currently.

MacDailyNews Take: We guess that, for some reason, in under two weeks, Shaw’s “concerns” about Apple’s valuation have simply evaporated even as the company’s market value has risen $21.8 billion to $162.6 billion since April 22.

36 Comments

  1. Kudos for Wu!

    Oh everyone makes mistakes.
    Oh, yes they do
    Your sister and your brother and your dad and mother too;
    Big people, small people, matter of fact, all people!
    Everyone makes mistakes, so why can’t you?

  2. if you know apple then its easy to predict whats coming around the corner… these guys are so consumed by the numbers game of wall street that they loose track of how things really work… MDN should be the only source of apple info investors look to…lol

  3. AAPL had gone from $120 to $160 in 12 weeks. Wu was not irrational to suggest the shares were now priced at a point whereby the investor was likely to make better than market returns with other firms which had not yet rallied to the same degree as AAPL.

    He didn’t say dump it. He did say there were other places where you might make more.

    The extension of the run up to $185 is interesting in that the typical dump of shares after the earnings report didn’t occur. As a result, the shares have traded thinly since. Simple supply and demand has driven this run.

    For Wu to step in with the upgrade, it is reasonable he sees tight supply in shares which are likely to continue to drive pricing compounding against the buzz of the new phone.

    Those interested in measuring their genius against his are free to do so. The meeting happens most everyday on Wall St.

  4. So the guy made some decision he now considers a misjudgement.
    So he corrects it.
    Seems pretty sensible to me.

    More sensible than the average Apple-analyst, let alone the average MDN-reader. Wu’s OK.

  5. Wu anticipated a post earnings dump so he downgraded but now after the results he can resume his pre-reporting condition. AAPL is a buy at 240, remember we were supposed to be here by now from December’s perspective.

  6. @Gwendo – your poem should be reprinted on the cover of the WSJ once a week. Hilarious commentary, Dr. Seuss style!

    @Tom – astute observation. The market sold when Wu downgraded not so much on the strength of his analysis or reputation, but because he’s been bullish for so long. I don’t think he was wrong in his analysis on the downgrade at the time, but it’s wrong now and he promptly corrected it.

    Who was the other downgrade — was it Morgan Keegan?

  7. This clown cried wolf to drive down the price of Apple’s stock so he could buy more knowing full well that Apple’s stock would go up.

    Maybe next time this clown cries wolf, the others ANALysts should ignore him as he talks through where the sun don’t shine. There was no logical reason for his down rating on Apple, plain and simple.

  8. So people that listed o Wu lost money on this deal??? I guess that makes him a good analyst? If he has said that he expected some sell off of the stock and it did not happen, I would say SMART man, just got it wrong.

    But he indicated that Apple was in for a down drop. And now he thinks it is ready for a ramp up??

    I have a two sided quarter too. Can I be an anal – ist too?? ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    en

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