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Analyst: AAPL Has Hit Rock Bottom

by , 2:00 PM EDT, October 10th, 2008

Oppenheimer analyst Yair Reiner thinks that Apple's stock [AAPL] has hit rock bottom. While he adjusted his target price down from $213 to $145, he made a strong case for the stock in a note in investors on Friday.

"To put Apple's current valuation in perspective, on a trailing cash flow basis, it's trading in line with the historic trough multiples of HPQ and DELL," he wrote. "You have to look back to the darkest days of 2001 - pre-iPod - to find Apple's multiple this beleaguered."

Mr. Reiner noted that Apple's cash on hand has now reached US$23 billion. If the global economy doesn't "plunge into a hall of horrors," Mr. Reiner expects Apple to continue to grow and outperform thanks to the continued migration from Windows to Macs, the iPhone, and ""a global Halo 2.0 effect that's bringing iPhone users into the Mac fold."

Over at Piper Jaffray, analyst Gene Munster told his investors earlier this week that he expects to see price cuts on the new Apple notebooks of 9 to 18 percent on October 14, with meaningful upgrades.

In afternoon trading, AAPL was at US$95.96, up $7.22 for the day.

If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Observer Comments

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Close Name:Tiger Posts: 1013 Joined: 17 Jun 2003
Fri Oct 10, 2008 2:12 pm Subject: I know it's splitting hairs

but can it be stated properly?

Apple's not "cutting" prices on the yet unseen notebooks. It's introducing newer models at a lower price point.

Now, if they want to cut the price of the current MacBook and MacBook Pros, we'll all be happier for that. (oh, and the MacBook Air too)

//yes, it's been that kind of Friday. Sue me.


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Close Name:Lavode Posts: 147 Joined: 03 Dec 2001
Fri Oct 10, 2008 2:34 pm Subject: I agree

Just bought 10 shares.


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