“Apple’s bear-territory brushes are clearly immaterial to Topeka Capital analyst Brian White, who reiterated a price target on the stock [$1,111] on Thursday that is more than double current trading levels,” Aabha Rathee reports for Wall Street Cheat Sheet. “White said the current trend simply represented a correction. ‘Similar to other corrections in Apple’s stock, the fears in the back of investors’ minds come to the forefront and the bear stories gain credence,’ White wrote in a note to clients on Thursday. ‘We have heard it before, we’re hearing it now and we expect to hear it again in the future. However, these concerns have proven dead wrong over the years and based on the product lineup at Apple, we believe they will be dead wrong in the foreseeable future.'”
Rathee reports, “White points out that the drop is similar to three other corrections seen by Apple in the past 13 months — falling 16 percent from September through October last year, 15 percent from October through November 2011, and 19 percent in April to May this year… He also said that tax-related selling was hurting the stock price, with investors preparing for the upcoming fiscal cliff by selling now. Taxes on investment returns and dividends are set to go up at the start of 2013 unless the government works to prevent the automatic switch.”
Rathee reports, “However, heading into the traditionally positive holiday season, Apple was likely to recover fast, White said, adding that this was an opportunity to buy. ‘We believe that those investors that have missed the Apple rally over the past year are presented with a very attractive entry point heading into the strong holiday news season,’ he wrote.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]