Analyst Predicts 52% Gain in Apple Shares
Apple (Nasdaq: AAPL) released its fiscal third-quarter report yesterday, showing a 21% rise in net income to $8.8 billion. Earnings per share came in at $9.32 a share.
The problem is, earnings missed Wall Street’s forecast of $10.37 per share. And since that’s an extremely rare event for the company, investors responded by selling off shares.
As a result, the stock has dropped as much as 5% today.
Some analysts are seeing this as the perfect buying opportunity, however, considering that Apple’s product pipeline could be especially lucrative this holiday season.
As Thomson Reuters analyst, Jharonne Martis, says, “The stock is considered a ‘Buy’ usually in the weeks leading up to the introduction of a new product. And we could see a new iPhone 5 as early as October.”
However, Martis goes as far as saying shares should be 52% higher than current levels…
“It should be trading $300 higher at about $900 a share. Market expectations are still considered very low. The price of the stock has not grown as fast as Apple’s bottom line.”
Think that’s a bit overblown? We do, too. Tune in to tomorrow’s Wall Street Daily e-letter to see Louis Basenese’s take on Apple’s outlook. He’ll show you why Apple shares actually carry more downside risk than upside potential.
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Related Topics: Earnings, Stocks, Tech and Innovation
