Analysts went too far with their fears Apple could be caught in the downward spiral of consumer spending. Tuesday analysts say the 18 percent fear-driven drop in Apple shares may have been ‘overdone.’
Apple shares were up 3 percent to $108 early Tuesday after Monday losing $22.98 and closing at $105.26 on Nasdaq.
Goldman Sachs analyst David Bailey said Monday’s pullback “more than captures the concerns over Mac growth in a weakening spending environment.”
While Bailey feels weak consumer demand means Apple shares could see wild swings, the analyst said iPhone sales could boost the stock through the rest of 2008.
Although Apple shares were sent lower by questions of consumer demand, “in the intermediate-term, we think Apple shares could move back to the $145 level” in 2009.
In a similar move, Citi stayed with a “Buy” rating for Apple shares, but cut its Apple target price to $170 from $287.
On Monday Morgan Stanley analyst Kathryn Hubert cut the target price for Apple stock to $115 from $178. The analyst cited concern Apple earnings could not meet the June quarter levels.
Along with Morgan Stanley, RBC Capital Markets cut its target price of Apple stock to $140 from $200. RBC analyst Mike Abramsky also downgraded Apple stock to “sector perform.”
