Bernstein trims Apple target price to $750 from $800

“Bernstein Research analyst Toni Sacconaghi today became the latest Street analyst to trim his price target for Apple,” Eric Savitz reports for Forbes.

“While he keeps his Outperform rating, Sacconaghi trimmed his target ro $750, from $800,” Savitz reports. “He also trimmed his FY 2013 EPS forecast to $49.41 a share, from $50.57.”

Savitz reports, “He sees revenue growth of 22% for FY 2013, 15% for FY ’14 and 8% for ’15… Earnings, driven by iPhone and iPad, should grow 35% over the next two years to $60 a share. ‘In the near term, we suspect that Apple’s stock could continue to be range-bound, given worries about the company’s ability to eclipse first-quarter and full-year FY13 estimates and given questions about the trajectory of gross margin improvement,’ he writes. ‘For longer-term investors, we believe that Apple offers a compelling combination of attractive growth, reasonable price and significant future option value.'”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

10 Comments

  1. I’m surprised more analysts aren’t cutting their AAPL targets. Now that it is clear that AAPL performance is completely uncoupled from the performance and prospects of the company as a whole, it becomes a risky stock to hold – long or short-term. With some of the best possible indicators going for it, it has lost about 1/4 of its value in 5 months – way out of proportion to the rest of the market.

    1. That’s exactly how I see it. Apple shareholders are being put in a no-win situation. This perception that Apple is a failing company just seems to be overwhelming. I just don’t understand why investors should fear Apple would collapse faster than Amazon. It really doesn’t make any sense. One would think an ocean liner could weather a storm better than a rowboat.

      Both Google and Apple have similar median share prices with Google having about a $50 higher edge. Yet, Apple shares are sitting nearly $200 lower than Google’s for reasons I just can’t understand. Apple’s fundamentals are clearly stronger than Google’s, so what makes investors feel safer buying Google than Apple? Google’s growth seems to have slowed years ago and yet it manages to keep a high share price. I just can’t make heads or tails out of valuing stocks because valuation methods that work for other companies don’t seem to work for Apple.

      Amazon looks downright sick fundamentally, but Wall Street sees it as a shining star. I’m only saying that trying to use basic fundamental values clearly doesn’t work which should make charts and spreadsheets almost worthless for valuing a company. Using future values to show the worth of a company isn’t right because that can’t be guaranteed.

      1. It doesn’t matter in the long term. Apple will keep making money quarter after quarter, and the general population of investors will get a clue eventually. The “analysts” know better, and they are playing a game.

        > Yet, Apple shares are sitting nearly $200 lower than Google’s…

        What…? The actual share price is completely irrelevant when comparing one stock with another stock. Yes, Apple is undervalued, but the fact that APPL is around $520 and GOOG is around $720 is irrelevant. Google has about three times fewer shares outstanding, compared to Apple. If Apple did a 4-for-1 stock split today so that there are four times as many shares outstanding with each share at about $130, does that make Apple (the company) four times less valuable. Of course not…

        Speaking of stock splits, AAPL will become even more susceptible to manipulation if Apple decided to do a stock split, because it will likely bring a larger number of smaller (more panic-prone) investors into the mix. It may bump the price in the short term, but it will cause bigger price swings in the long term. Not worth it…

    1. Could be.I think $500 is very possible. But no stock split. And as for all the people who claim “manipulating going on with Apple”, then all these folks must have made a lot of money buying puts the last 21/2 months. How could they not? If you really think its being manipulated, simply make money as it goes down. I have. And I don’t think it’s being “gamed”.Puts. Quit bitchin and put your money where your mouth is.

  2. Take the dividends, ignore the imaginary values and be happy in a long stance.

    Now send me a few millions for this advice and stop reading what the “analysts” are saying.

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