Apple Stock Prices: Coming on the heels of Gene Munster’s recent discussions regarding the near term future of Apple Inc. (NASDAQ:AAPL) stock, Maynard Um of Wells Fargo Securities has issued a note to investors to discuss a potential rebound for the tech giant.
Despite the fact that Apple stock has been pummeled in the first month of 2013, Um feels that things will turnaround as 2013 wears on.
In a note to investors, as outlined by AppleInsider, Um did his best to keep a positive outlook. Here is a brief outline of his initial comments, as published by AppleInsider:
“A year ago, the iPhone 4S and iPhone 4 shared common components, helping to boost Apple’s gross margins, Maynard Um of Wells Fargo Securities said in a note to investors on Friday. Along with a record setting launch of the iPhone 4S in the 2011 December quarter, he believes it could make for a tough comparison for Apple for the start of the year.”
“But Um sees Apple’s difficult 2012 comparisons easing as the year goes on. He expects that Apple’s next iPhone, the so-called “iPhone 5S,” will share design similarities to the current iPhone 5, helping to improve margins.”
For now, at least, Um agrees that things are going to be rough for Apple Inc. (NASDAQ:AAPL) and investors. However, the good thing is that he is expecting a turnaround when the iPhone 5S eventually makes it way to market. While this is no guarantee of a turnaround, he seems to think that things will begin to look up sooner rather than later.
“Because of that, Apple’s current “black ice,” as Um put it, is predicted to “thaw through summer.” He sees easier comparisons to 2012 along with improving gross margins, which could improve sentiment among investors.”
Here is a direct quote from Um in his Friday note to investors:
“While this requires some patience as the cycle transitions and then matures to drive gross margin, we believe valuation will rise with sentiment.”
“While there seems to be some concern around competition and diminishing demand, had some operators not been as restrictive on upgrades relative to past new product launches, Apple would have experienced an even stronger launch, making what we expect to be a record setting December even more impressive.”
Wells Fargo Securities has a projected valuation range for Apple Inc. (NASDAQ:AAPL) stock from $680 to $730. This is an adjustment to their prior forecast of $710 to $730.
Do you agree with Maynard Um that a rebound is in the cards? Share your thoughts in the comments section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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