Apple Inc. (NASDAQ:AAPL) stock seems to be at a crossroads right now after losing 20 percent of its value since achieving an all-time high of $705 per share in mid-September. After getting some feedback from a couple of analysts yesterday who suggested the bear market on Apple wasn’t quite complete. But Thursday morning, the company got some support from a couple other analysts who have put forth Buy ratings on the stock.
Peter Misek of Jefferies & Co., was one of the analysts who gave an endorsement to Apple Inc (NASDAQ:AAPL) in a research note Thursday morning, giving the stock a Buy rating an a lofty $900 price target – a premium of nearly 30 percent over the stocks’ all-time peak. Misek commented that Apple Inc (NASDAQ:AAPL) has had a recent history of beating analyst estimates in gross margin by more than 3 percentage points, and the Street has a current gross margin prediction of 38.6 percent, which prompted Jefferies to lift its own estimate to 40 percent from 39 percent. The company also believes that Apple will ship about 53 million iPhones during the current quarter, which is more than 10 percent higher than the overall Street estimate.
On another note, a pair of Oppenheimer analysts posted a research note calling for a return to $620 per share in a near term, with a long-term price target of $800. In the note, Oppenheimer wrote, “We believe Apple’s competitive position is unchanged and see it better position with a refreshed portfolio across all key segments heading into 2013. We see good potential for a rebound as iPhone/iPad demand holds up. Buy on weakness.”
The analysts added confidence that the current supply issues will be rectified to meet the existing demand, and that the overall fundamentals as the most prominent tech name in the markets will hold up. These latest endorsements might provide some incentives for Apple Inc (NASDAQ:AAPL) investors like billionaire David Einhorn of Greenlight Capital – who had an $849 million position in the stock at the end of June – to perhaps strengthen their positions.