BMO: Economy Taking a Toll on Apple's Growth

by , 12:20 PM EDT, September 25th, 2008

BMO Capital analyst Keith Bachman adjusted his target price for Apple down a notch on Thursday and said that the weak economy has started to take a toll on Apple's system business.

Mr. Bachman adjusted his estimates for Apple down very slightly: 2.71 million Macs for the September quarter instead of 2.86, 12 million in 2009 vs 12.6 million and US$40B in total revenue, down only $600 million from previous estimates.

He also set his target price for AAPL at US$180, down from $190, but maintains an Outperform rating. He doesn't believe AAPL will go below $120.00.

The adjustments are minor and reflect the feeling that the economy in general will merely slow the rate of Apple's growth.

In morning trading, AAPL was on a steady rise with investor confidence likely buoyed by Wednesday's Presidential address and Congress nearing agreement on a Wall Street bailout plan. Currently AAPL is trading at US$132.02. + $3.32 for the day.