Analysts cut Apple targets, estimates

“Wall Street analysts cut their price targets and estimates on Apple Inc. on Wednesday following the company’s second fiscal quarter report, citing worries about later product introductions and a continued squeeze on profit margins,” Dan Gallagher reports for MarketWatch. “On the company’s conference call, Apple CEO Tim Cook said the company was looking forward to “some amazing new hardware, software and services that we can’t wait to introduce this fall and throughout 2014.” But the company also projected that gross margins would remain below 38% for the June period.”

“‘Ultimately, we are more worried about secular gross margin pressures — particularly on the iPhone,’ wrote Toni Sacconaghi of Bernstein Research, who cut his price target on the stock to $600 from $725 and predicted that ‘in the near term, Apple’s stock might continue to be choppy,'” Gallagher reports. “At least 21 brokers cut their price targets on Apple’s stock following the report, with the average reduction at about 12%, according to data from Thomson Reuters. Current targets range from $400 to $880, while the median has slipped from about $568 to $540.”

Gallagher reports, “Gene Munster maintained a $688 price target and overweight rating on Apple’s shares. He said he expects many on Wall Street to reset their estimates following the report, which may give room for the stock to start seeing some upside.”

Read more in the full article here.


  1. There are days when I wish MDN would stop carrying financial reports and just tell me what Apple is up to. I’m so tired of hearing people who have no idea what Apple is going to do telling me what Apple is going to do.

    There once was a time when a company’s stock price was based mostly on how they were doing. Today it’s based mostly upon how it can be pushed and pulled to benefit hedge funds and their managers. It’s a sad time for the average investor who just believes in American industry.

  2. estimate: es•ti’•mut

    noun: excuse to be wrong repeatedly with no personal consequence

    Analysts continue to adjust their estimates on Apple as the company delivers results within its own guidance range.

  3. I rest my case. Anyone around here paying attention? Wall Street has zero confidence in Timmy Cook and totally ignores his undelivered promises of what’s on Apple’s mythical pipeline.

  4. The calm before the storm leaves the analysts confused. They haven’t felt confidence in apple from the time it grew from near bankruptcy to the wealthiest company in the world. They are just looking for new reasons after being proven wrong for the last 15 years.

  5. Yup, 21 ‘analysts’ cutting their price targets, but they won’t be able to raise their price targets fast enough in the fall when Apple introduces new products/categories.

    Just like how they couldn’t raise their targets fast enough on the way to $700. What a bunch of losers.

    At least Munster has the conviction to keep his target at $688, but that’s not saying much.

  6. Google and crew must be joyously dancing all over Steve Jobs grave. They’ve given Apple a serious beat-down and made arrogant Apple shareholders cry tears of blood. How good it must feel for them to spread a copied OS and destroy the original. It only took a few years time despite Apple throwing away all that money in the court system to no avail. Android is growing faster than ever. All Google has to do is keep updating Android as a side job and Apple can’t touch them. i know Eric Schmidt was laughing all the way to the bank after sticking a knife in Steve Jobs back.

    Google was able to turn the whole smartphone industry against Apple for only a small amount of money. If Apple were smart it should build a search engine and offer free search without ads and undermine Google’s core search engine business and Google couldn’t do a thing about it. I’d love to see Apple go up against Google. Why should Google be able to fly high and untouched without a serious challenger? I think it would be fun to watch Google struggle for profits like Apple is doing.

    Google going to $1000 while Apple is going to $350 doesn’t sit right with me at all. I’m sorry, but I think Google needs a serious whuppin’ for giving birth to Android.

    1. “How good it must feel for them to spread a copied OS and destroy the original.”

      Certainly copied, but no serious destruction thus far.

      Google going to $1,000? OK, but certainly not on timeless sound market fundamentals.

      When Apple passed Google in share price the trouble began. The volume of negative reaction since then became a full court press. How much of it was imagined or real is open to debate,

      Bottom line: For whatever reason, the street decided to back a copier over the originator.

      The hell with the street, analysts and clueless tech press out for hits — end the FUD Tim and take the company private.

  7. Just got off the phone with AppleCare support. THERE is a good indicator of a company that isn’t failing. I have made a number of calls over the decades to Apple for support and or questions and have never ever been dissatisfied. Not once. Same holds true for the Apple stores. Don’t know how the Apple Store employees keep such a good attitude considering how busy they are? And they are always busy. Another reason that Apple is not failing. Thank god they got rid of Browett before he was able to do any damage! If you need true professional help at a higher level sometimes you end up in stores like Melrose Mac. They’re great too. But there are fewer and fewer Mac stores that are independent. That’s the only downside to the success of the Apple retail stores. But at least out here near the studios, you can still get plenty of help if you need it. I don’t know what support with Samsung would be like but I’m going to guess it sucks. It does with everyone else. When Apple stores start closing and phone support sucks then I’d start worrying. Until then Apple is in fine shape fundamentally.

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