Oppenheimer Upgrades Apple Following Jobs’ Health News
7:30 am, January 6th, 2009, Ed Sutherland
Photo: Cishore/Flickr
“The ‘Apple Community’ is now due an update in late spring, but until then the recovery will presumably be allowed to run its course without undue prying,” Oppenheimer told investors.
Monday, in an open letter, Jobs explained he suffered from a ‘hormone imbalance’ which caused his weight loss. Since September, when the Apple leader appeared frail and gaunt, fans and investors have speculated about his health and status as CEO.
Attempting to address those rumors, Jobs said he is undergoing treatment and plans to remain as head of Apple until he recovers.
Despite the reassuring words, the financial analyst firm cut its target price for Apple stock by $10 to $135. Oppenheimer said it was still concerned if Jobs could continue in the post while undergoing treatment.
Last month, Oppenheimer downgraded Apple after Jobs bowed out of the traditional Macworld keynote speech. Apple marketing head Phil Schiller is slated to sub for Jobs at Tuesday’s keynote. The brokerage said questions of Jobs’ health and no clear successor were a risk to Apple’s continued success.
On a similar note, BMO Capital Tuesday cut its target price for Apple shares to $108, from $120. Analyst Keith Bachman cited “continued weakness in consumer and educational buying trends.”
Apple will likely tell investors in March to expect between $7.1 billion and $7.5 billion in revenue, down from the Wall Street consensus of $8.4 billion, Bachman told clients.
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