What’s Behind Munster’s Shocking Apple Cut?
In a development likely to greatly hurt shareholder sentiment, well-known Apple (NASDAQ:AAPL) bull Gene Munster has cut his price target for the company’s stock. The Piper Jaffray analyst said slightly less optimistic expectations vis-à-vis the company’s profit margins had led to his decision of adjusting the target from $910 to $875 per share.
“What’s going on is we’re being more conservative,” Munster told CNBC’s “Fast Money” on Thursday. “We’re factoring more the negative potential outcomes in the next year and two years, and not factoring as much as the positive potentials.”
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Munster explained that his analysis of lowered profit margins were inspired by the possibility of Apple releasing a sub-$400 iPhone this year to target cost-conscious markets. However, he added that he hadn’t accounted for the potential growth in market share for this particular segment. What happens next?…