Shaw Wu: Apple Well Positioned to Weather Current Economic Storms

by , 12:15 PM EST, February 20th, 2008

American Technology Research analyst Shaw Wu took note of Apple's price cut for the iPod Shuffle on Tuesday and stated that the action by Apple will put new pressure on the competition, mitigate one of the key risks lingering from the December quarter and that the cut could provide an incremental gain of one half to a million additional unit sales this quarter.

In his note, Mr Wu provided these analysis points:

The conclusion was that "While near-term trends look difficult with a looming recession and a slow-down in consumer spending, we continue to believe AAPL is well-positioned to weather the storm better than most with its strong fundamentals."

Mr. Wu's target price for AAPL was set at US$175.00 and a "Buy" rating. In morning trading on Tuesday, AAPL is trading at $123.04, up $0.86.

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.