Analyst Downgrades AAPL Citing Economic Worries & School Budgets
Analyst Downgrades AAPL Citing Economic Worries & School Budgets
by , 11:00 AM EDT, April 8th, 2008
Morgan Keegan & Co. lowered its rating Tuesday on Apple Inc.'s stock to a Under Perform, down from a Market Perform rating. Coming a day after Thomas Weisel & Partners raising its own rating for AAPL to Overweight, Morgan Keegan & Co. said that decreased consumer spending in the tech space was going to hurt Apple, along with ongoing budgetary issues in U.S. public schools.
At issue is the economy, where the firm sees, "mounting evidence of broad-based weakness in consumer technology spending in the U.S. and Europe." The San Jose Business Journal reported that the firm expects to see pressure in Apple's education business due to budgetary constraints.
In contrast, Thomas Weisel & Partners upgraded Apple to Overweight on Monday, citing the company's long-term growth opportunities. Thomas Weisel & partners also raised its price target on AAPL to US$195 per share, up from $188.
Apple traded lower in the mid-morning trading session on Tuesday at 155.754, down 0.136 (-0.09%) in moderate volume.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.
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
Analysts have no clue what is going on. One upgrades, another downgrades. They're all running around like headless chickens after the Bear-Stearns debacle anyway, either because they're flabbergasted they missed such a thing building or ecstatic that they had their fingers in J.P. Morgan when the free money came rolling in. Movie critics are more useful than financial analysts.
QuoteDean Lewis wrote:
Analysts have no clue what is going on. One upgrades, another downgrades. They're all running around like headless chickens after the Bear-Stearns debacle anyway, either because they're flabbergasted they missed such a thing building or ecstatic that they had their fingers in J.P. Morgan when the free money came rolling in. Movie critics are more useful than financial analysts.
Well-put. It would be interesting sport to have analysts' pay be based upon their accuracy: if they're wrong, their pay is cut. If they are wrong, say, more than half the time, they would be fired. Isn't that what "capitalism" and "competition" is all about?
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