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.”
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
2 responses to “RBC Downgrades Apple To ‘Underperform’”
Since when is 70 less than half of 125?