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

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

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!