Are These Apple Bears Getting It Wrong?
A large number of Apple (NASDAQ:AAPL) analysts have reversed previously bullish positions over the past few days and cut their price and sales targets for the company, igniting confusion and raising concerns over the quality of the analyst calls.
Shares of Apple tanked at the end of last week. The stock closed down 1.69 percent on Thursday, and down 3.8 percent on Friday. The cause for concern seems to be a general sense that the world’s largest and arguably most innovative company won’t be able to keep its sales figures up through the holidays.
According to Bloomberg, at least five analysts are in the spotlight for making bearish calls recently. Glen Yeung at Citigroup suggested that Apple’s Asian suppliers have reported a drop in orders, which leads to concern that iPhone 5 sales are dropping off (despite 2 million sold in China over the weekend). He cut the stock’s rating from “Buy” to “Neutral” and moved the price target from $675 to $575 per share.
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Andy Hargreaves, an analyst at Pacific Crest Securities, reduced his projection for 2013 iPhone customers from 84.3 million to 62.4 million, saying that the device was at a saturation point. His price target dropped from $645 to $565 per share.
Perhaps king of the bears, ABG Sundal Collier initiated coverage of the stock with a “Sell” rating and a price target of just $400.
These fears are in line with the stock’s movement over the past few months (down over 26 percent since September 18) but not necessarily in line with the reality that many investors see…