“A UBS analyst lowered his Apple price target from $150 per share to $140 per share. The report is just another ‘actionable’ research note and should be totally ignored,” Jay Somaney writes for Forbes.
“It appears the UBS analyst is worried about a separate note from Credit Suisse last week. That report cited Credit Suisse teams in Asia who say Apple cut component orders by 10%. (How many “teams” in Asia does UBS have that follow the Apple supply chain?)” Somaney writes. “Basically, you will have a number of analyst who are on the fence as far as Apple as an investment (nothing wrong with that) and are playing the cover your butt – or better known as the CYA – game.”
“By maintaining his ‘Buy’ he can say that he had a buy rating on the shares all along but by lowering his target and raising the same pathetic issue that the CS analyst did, he can say that he did cut his estimates and price target,” Somaney writes. “This will not be the last ‘actionable research’ you see as all the analysts are scrambling for their 2015 bonuses and also playing the CYA game so that they have a contract/job next year.”
Read more in the full article here.
MacDailyNews Take: Investors never forget that the sole qualification for becoming a Wall Street analyst is getting hired as a Wall Street analyst.
Apple shares continue to get slammed on commission/bonus related ‘actionable research’ – November 10, 2015
Apple lower after Credit Suisse notes substantial supply-chain cuts – November 10, 2015
[Thanks to MacDailyNews Readers “Fred Mertz” and “Arline M.” for the heads up.]