Analysts reiterate $750-$950 price targets on Apple stock

“RBC Capital’s Amit Daryanani, reiterating an Outperform rating and a $750 price target [on AAPL], writes that “In recent weeks we have discussed and heard myriad of issues that have lead to AAPL’s under-performance,’ including concerns about gross margin decline, the prospects of new products, the issues of supply constraints for existing products, the fiscal cliff and tax issues in 2013, and the recent management shake-up,'” Tiernan Ray reports for Barron’s. “The company’s projection of a drop to 36% gross margin this quarter ‘is more reflective of their conservative stance and transitory ramp headwinds vs. structural challenges.'”

“Piper Jaffray’s Gene Munster, reiterating an Overweight Rating and a $900 price target, writes that ‘core issue for investors is what Apple’s true margin profile will look like moving forward,'” Ray reports. “Munster thinks margins will stabilize: ‘Our analysis of Apple iOS product margins (components only) suggests that the margin profile for Apple is unlikely to significantly change the company’s overall margin profile despite commentary to the contrary on the Sep-12 earnings call.'”

Ray reports, “William Power of R.W. Baird reiterates an Outperform rating on Apple and a $750 price target, writing that ‘Though obvious from the stock action, recent investor meetings and conversations confirm that investor sentiment has turned decidedly negative. Determining a hard bottom is difficult, though we would note the stock is now trading near its recent P/E trough of roughly 10x forward earnings, with fear creating opportunity.'”

Read more in the full article here.


    1. But isn’t it bad to make money off of a stock? By the way many people on this site write, you would think it is a sin to make money off of an investment in Apple through buying and selling.

      AAPL has been good to me and I love the fact that it is volatile. People’s fear and greed keep me in Apple products and buy my groceries and vacations.

      1. You invest for one reason and one reason only, to profit. No one on the site thinks that it’s wrong to make money when investing. It’s just that there are a lot of buy and hold investors. They have not learned to take profit occasionally when it is obvious that they should. With the stock down so low there’s a lot of angst among those folks. That’s a lot of profit to have left on the table. But their anger is understandable. I did the same thing years ago. I learned from my lesson. Despite what they may say, I’ll bet most of them have learned also. It’s just anger and denial. It hurts a whole bunch when you didn’t do the right thing. But no one thinks that it’s wrong to gain from investing. It’s why you invest. To make and take profit.

  1. Not asking for $800 or $900. I’d like to see at least $725 by the end of the year. I’m not greedy but I’d like to see a little bit of fair play for Apple. Amazon and Priceline shouldn’t be getting all the breaks.

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