Apple Shares Down as Analysts Lower Price Targets

Apple Inc. (AAPL) shares hit the skids after a number of analysts lowered their price targets for the tech giant on Monday. Of note, RBC Capital Markets analyst Mike Abramsky dropped his target from $200 to $175.

The company has suffered from a number of impediments that led to the reduction including iPhone product glitches, product launch delays and unknown market acceptance of new products, such as the MacBook Air, Mr. Abramsky writes in a research note to clients.

Mr. Abramsky said:

Although we expect Apple to deliver strong results, we see Apple's valuation multiple vulnerable, should market sentiment continue to deteriorate and could compress on further on unexpected competitive developments.

It's not all bad news, however. Mr. Abramsky says he expects a 3G, or third generation, iPhone will be released in within the next quarter or so, which could account for 25% to 30% of the company's 2008 iPhone shipments.

Mr. Abramsky still maintains an "outperform" rating on the stock.

Comments

[Murphy-Mac:]

What, specifically, are the "iPhone product glitches" mentioned in the article?

2008 Mar 04 02:35 PM

[TanToday:]

>>>>>-&... unknown market acceptance of new products, such as the MacBook Air, Mr. Abramsky writes in a research note to clients<<

The ONLY unknown about the MacBook Air, is how the heck you can BUY one. They are continually sold out everywhere, and the wait for one over on Amazon is now listed as 5-7 days. Things are so tight on this one, that there are sites that monitor every Apple store and nightly post where one can find ONE OR TWO that can be purchased. Normally those are gone in an hour or two, despite daily deliveries.

Oh, the "iPhone glitches" are the DEMAND being so high, that despite it only being officially sold in four countries, there are reports of fairly heavy use now in over ONE HUNDRED countries, that means the DEMAND is there, but the obstacles R the leaden footed goons running monopolistic telephone systems and their reluctance to share revenues.

One more ANAL-yst who faced a blank sheet of paper, and with nothing to say, just made things up, since it is now "pile on Apple" month, and he just did, with more fluff and froth, with NO FACTS even matching reality.

2008 Mar 04 04:54 PM

[wallywonka:]

Agreed!!!! Make up something...or lose your job. Frankly, I'd like to have them lose there job. Don't these analysts realize what they sound like? Empty windbags. I read this junk for laughs...just to see how they can twist a story to make print.

2008 Mar 04 06:38 PM

[TanToday:]

Like this gem:

>>>>Mr. Abramsky said:

Although we expect Apple to deliver strong results, we see Apple's valuation multiple vulnerable, should market sentiment continue to deteriorate and could compress on further on unexpected competitive developments.<<&...

TRANSLATION: -> Apple might go up, or down, or maybe not either, and WE STAND BY THAT prediction with our entire firm's reputation!

Honestly, that statement HAS to be composed while sitting on the crapper, with the NYTimes in one hand, the other punching in to the "Love Line" on your RIMM machine, while thinking about where you can get tickets to the hot broadway show this weekend.

Honestly, HOW DO FOLKS GET THESE jobs? I want one. Mumble something, cover your butt six ways to sunday, NEVER stand by something you wrote over two weeks ago, and run HARD with the HERD.

And moan and groan when your annual bonus is not enough to buy the latest Mercedes.

Sigh....

2008 Mar 05 01:40 AM