Citi Cuts Apple Estimates, Cites Consumer Spending
Citi has lowered its target price of Apple shares to $132 from $153, citing the need to “reflect a more conservative view of consumer spending.”
Richard Gardner told clients Apple may have sold fewer than 4 million iPhones for the last quarter of 2008, slipping from the record 6.9 million handsets Cupertino sold during the third quarter of 2008. Gardner based his estimate on a check of iPhone shipments.
The lower expectation is because Apple reduced iPhone inventory heading into the first quarter, a generally weaker period, the analyst suggests. However, the reduced inventory could signal Apple is readying an iPhone “refresh” in April or May, according to Gardner.
The analyst also cut his earnings expectations for Apple during fiscal 2009, 2010 and 2011. Gardner retained a “Buy” recommendation for Apple stock, however.
Earlier this month, BMO Capital analyst Keith Bachman cut Apple’s target price to $108, from $120, citing “continued weakness in consumer and educational buying trends.”
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Citi Cuts Apple Target Price To $153, Joining Other Markdowns
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