“So here we go again. Just when reality finally began to emerge from its shell on Wall Street, and Apple Inc. creeped above $100 a share, the company gets punk’d by Morgan Stanley,” Jim Goldman writes for CNBC.
“While so many other firm’s have been lowering price targets on Apple for weeks, Morgan Stanley analyst Katie Huberty holds the distinction of being the first to take an Apple target below $100,” Goldman writes. “Her $95 target is the first double-digit one on the Street, and it comes at a time when Apple investors finally began to settle into a nice, stable, though small momentum to the upside.”
“Timing is everything. What I can’t understand is why this analyst still carries the influence she does. I don’t know Katie Huberty but I do follow her work. Closely. So do many of you. Andy Zaky has written extensively about Huberty’s track record, missing revenue estimates by almost $1 billion and EPS by 6 cents. Those numbers could almost be forgiven because of the meaningless guidance Apple normally provides. Her estimates on individual business units, however, have been way, way off. She was 700,000 units below iPhone’s performance, 2 million units light on her iPod estimate and 200,000 units under Apple’s Mac number,” Goldman writes.
“This has been detailed extensively. We all know these numbers and her track record. And yet as soon as she publishes, as is the case today, Apple shares nosedive. Nevermind the news, the trends, the fundamentals, research elsewhere,” Goldman writes.
Full article here.
[Thanks to MacDailyNews Reader “JES42” for the heads up.]