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 Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!