“After a nearly 10% drop in Apple (AAPL) from a lifetime high of $705.07 to a recent $638.17, the debate is on over whether it’s a deal now or whether it’s toxic,” Tiernan Ray reports for Barron’s.
“This morning, Nomura Equity Research’s Stuart Jeffrey initiates coverage of the stock with a Neutral rating and a $710 price target,” Ray reports. “His ‘checks’ of the supply chain suggest Apple will beat expectations for this quarter, fiscal Q1, and March, and there is “no material downside risk to consensus estimates,” but he sees growth slowing to single digits for Apple in 2014, and ‘as a company predominantly driven by mobile phones, an industry prone to volatility, we see little scope for upside given our single-digit earnings growth forecast beyond 2014.'”
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