“Shares of Apple are down $11.77, or 2%, at $543.22, extending earlier losses, amidst fallout from a weak outlook last night by supplier Jabil Circuit, and what appears to be a no-show for a much speculated partnership with China Mobile to carry the iPhone,” Tiernan Ray reports for Barron’s.
“Some of the bulls this morning are urging investors to keep the faith,” Ray reports. “BMO Capital Markets’s Keith Bachman, who has an Outperform rating on Apple shares, and a $585 price target, writes this morning that a deal may yet be announced, and a delay is not a bad thing… ‘We continue to believe that both China Mobile and Apple will want phones available for Chinese New Year (January 31).'”
Ray reports, “Wells Fargo’s Maynard Um, who has an Outperform rating on Apple shares, is similarly confident a deal will show up: ‘While the missing announcement may be perceived negatively, we see this as a non-issue and believe this is more of an issue of timing and ultimately expect an agreement to be reached.'”
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