“Apple (AAPL) has rallied 7.8% since recording a 52-week low of $419 on March 4. This is not the first time the tech giant has experienced a promising recovery since slipping to below $600,” Nicholas Kitonyi writes for Seeking Alpha. “Nonetheless, the previous occasions have proved to be nothing short of a “sucker rally”, which means, a stock price increases for a short period of time before declining back to its usual position or even further below. This is normally attributed to speculation by investors following some news release or in anticipation of some news release. Apple seems set to avoid the trap this time round, though critics would argue that it’s still too early to judge.”
“Apple has maintained bullish recommendations from analysts despite its unimpressive showing at the stock market. The company has consensus rating of buy, with 41 buy ratings from leading analysts, 8 neutral ratings and only 2 sell ratings,” Kitonyi writes. “The average target price is at $607, or 34.27% upside of Wednesday 20, closing price.”
Kitonyi writes, “The company’s margins are improving and this can only get better towards the second half of 2013. Investors have proved to judge Apple’s performance and outlook based on its margins, and should therefore do the same based on better margins as predicted. It’s not too late to buy Apple.”
Read more in the full article here.