RBC Downgrades Apple To ‘Underperform’
7:15 am, January 15th, 2009, Ed Sutherland
RBC Capital Markets Thursday downgraded Apple to ‘underperform,’ also slashing the stock’s target price to $70 from $125.
The analyst firm also told clients the percent of people who say they expect to buy a Mac or iPhone over the next three months slipped in January.
Just 28 percent of people responding to a January RBC/Changewave survey reported they would buy a Mac laptop, down from 33 percent in Nov. Likewise, 30 percent of people said they intend to purchase an iPhone, when asked in December, slipping from 34 percent in September.
RBC also revised downward its revenue expectations for Apple during 2009. Apple may earn $36.2 billion this fiscal year, down from $38.1 billion.
However, RBC said Apple is likely to meet Wall Street expectations for the first quarter of 2009. Apple is expected to earn $9.8 billion for the first quarter, down just slightly from the $9.9 billion consensus. Apple will sell 4.5 million iPhones, 2.5 million Macs and 20.4 million iPods, RBC told investors.
Wednesday, Apple announced CEO Steve Jobs would take six-month medical leave to deal with health issues more complex than the earlier-reported “hormone imbalance.”
Posted by Ed Sutherland in News | Comment on this article
Since when is 70 less than half of 125?
mac1st, on January 15th, 2009 at 8:25 am