Apple Inc. (NASDAQ:AAPL) stock picked up some nice gains on Tuesday, to the tune of $9.66. While this was exciting while it lasted, things have turned around today and are once again looking bad.
Apple Inc. (NASDAQ:AAPL) is actually the smart money's second favorite publicly traded company but hedge funds have started dumping Apple in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).
Apple Inc. (NASDAQ:AAPL) Press Info
So, why did the Cupertino-based company give back most of its Tuesday gains early today? The reason was simple: three analysts issued reports that were anything but positive.
Let’s start out by taking a closer look at what Barclay's Ben Reitzes had to say.
As reported by CNN Money, Reitzes lowered his price target from $575 to $530. Despite meeting with Phil Schiller and Peter Oppenheimer, he claims that his reduction had nothing to do with the information discussed.
Moving on, it is time to see what Citi’s team of Glen Yeung, Jim Suva and Walter Pritchard had to offer. Here is what the article said:
“Glen Yeung, Jim Suva and Walter Pritchard retained their "contrarian" neutral rating on Apple and lowered their near Street-low $500 price target to $480 based on "evidence of reduced demand to Apple's suppliers" for both iPhone 5 and 10-inch iPad parts. They add that "despite much speculation amongst investors and 3rd party research, we find limited evidence of a low-end iPhone at this stage."
While all that information is interesting, it is the last portion that will strike a chord with many. The group does not necessarily believe that a more affordable Apple Inc. (NASDAQ:AAPL) iPhone is on its way.
Now that we have taken a closer look at the analysts who lowered their price target, it is important to note, “Merrill Lynch's Scott Craig is sticking with his $570 price target.”
Based on information by Thomson/First Call, the average Apple Inc. (NASDAQ:AAPL) price target among analysts is $630.
What do you think about this change by Barclay’s and Citi? Share your opinion in the comment section below.
DISCLOSURE: I have no positions in any stock mentioned.
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