JPMorgan Cuts Apple Target Price, Estimates for 2009
7:41 am, January 14th, 2009, Ed Sutherland
JPMorgan analyst Mark Moskowitz became the latest on Wall Street to trim expectations for Apple during the fiscal year. Moskowitz Wednesday lowered slightly his guidance for Apple shares to $102 from $104.
Earlier this week, Citi’s Richard Gardner reduced his target price for Apple stock to $132 from $153, citing the need to “reflect a more conservative view of consumer spending.”
Moskowitz, however, told clients Apple’s value is “holding up better than feared” despite lower demand for PCs and other high tech gadgets.
Despite the belief Apple will fare better than other companies struggling in a tough economy, Moskowitz lowered expectations for Apple revenue and product sales for fiscal 2009.
Apple will earn $34.7 billion during the fiscal year ending in September, down from $35.6 million, according to Moskowitz. Wall Street consensus is for $36.2 billion in sales.
In terms of sales of Apple’s flagship iPhone, demand for the handset in the U.S. remains strong, however “Europe has softened,” Moskowitz noted.
The revised iPhone estimate seems to mirror Gardner’s projection that Apple sold under 4 million cell phones during the third quarter of 2008.
Posted by Ed Sutherland in News | Comment on this article
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How many of these “experts” are ever right about Apple? They don’t seem to accept that Apple does not fit the standard model. I’m not saying Apple will have a record year, but they’ll hold up better than most.
And never forget these are the same guys who kept investing in mortgage derivatives to the very last minute. Anybody with half a brain (my friends say I qualify) could see that when you buy 5% of a third generation mortgage, there’s no collateral left.
imajoebob, on January 14th, 2009 at 10:32 am