Credit Suisse Cuts Apple Target Price To $120 From $135

Citing a “more conservative outlook for the PC industry,” Credit Suisse Thursday cut the target price for Apple shares to $120 from $135. Analyst Bill Shope also trimmed Apple’s 2009 revenue projection

to $33.36 billion from $34.85 billion.

In a note to investors, the analyst reversed his projection of PC shipments for next year. Shope believes shipments will fall 4.7 percent rather than increase 4.9 percent.

Overall, PC industry revenue is expected to fall 16.6 percent in 2009, according to the Credit Suisse note.

Shope said his estimate is in line with an outlook for a “severe recession” in the PC market with a 13.7 percent drop in desktop computers compared to a 4.2 percent previously projected.

The PC declines will also hit notebook sales with 20 million low-cost netbooks sold eating into 2 percent of traditional notebook sales.

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