Apple Inc (AAPL) is Oversold, Analyst Says

Apple Inc (NASDAQ:AAPL) has been battered and beaten over the last several weeks, despite the launch of at least three new products and a new operating system (iOS 6) and some record sales numbers. While here have been some mixed reviews about the stock and the company, one analyst went on CNBC recently to talk about Apple Inc (NASDAQ:AAPL) actually being oversold, setting a price target at $670.

Apple Inc. (AAPL)

Andy Hargreaves, senior research analyst at Pacific Crest Securities, spoke about Apple Inc (NASDAQ:AAPL) on CNBC’s “Squawk Box” program addressing the issues and upside about Apple (AAPL). “There are obviously some very real issues here in terms of slowing growth, especially post the iPhone 5 product cycle,” Hargreaves said, “and perhaps we’ve seen some limits on how high those gross margins can go, which means that gross profit won’t grow like it has in the past, but we’ve accounted for a lot of that at this point. It’s trading right now at 10.5 times my 2013 number, and with the amount of cash these guys have on their balance sheet right now, that is pretty darn cheap.”

Hargreaves went on to talk about the history of success for Apple Inc (NASDAQ:AAPL), but when pressed about the current momentum that seems to run counter to the new product roll-outs and sales numbers, Hargreaves did admit to this downtrend as perhaps being a “tell” for the stock’s future. “The company is selling every product that it’s making,” he said, “but I think the real question being alluded to here is, is there a market opportunity that is just as big as the smartphone and the tablet have been?” Hargreaves went on to say that the idea isn’t whether Apple Inc (NASDAQ:AAPL) has lost the ability to do what it has always done, but rather that the markets may have started to dry up for a company that is so large that it would need another large market in order to continue to post similar growth numbers, and he didn’t see that market out there.

“There is still opportunity to grow within the iPhone and iPad product lines, but not at the pace that we’ve seen in the last few years,” Hargreaves said. “It’s pretty much saturated at the high-end of the smartphone market in developed countries. Which means there are incremental opportunities here and incremental opportunities in emerging markets, but not like we’ve seen.”

Hargreaves summarized by stating his $670 price target on Apple Inc (NASDAQ:AAPL) stock one year from now, stating that “the stock has been oversold, and at the end of the day, when you look at the profit contributions of the iPhone and iPad … when we look at where the stock is now and we had that price target, we’d be buyers.” So would this mean that investors like billionaire Julian Robertson of Tiger Management should strengthen his position at this point? Would you do it if you had the chance?

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!