Appleis stock dropped on Monday, erasing recent gains, based on reports from both Banc of Americais securities analyst Scott D. Craig and RBC Capital Markets analyst Mike Abramsky.
In a story at CNN Money on Monday, Scott Craig reduced his target price for AAPL from US$180 to $160 in a note to investors and indicated that production levels for iPods are being cut. His estimate for iPods sold, year over year, for the current quarter, to be down 5 percent. He characterized iPhone production as volatile and reduced his estimate to 1.2 million units.
Mike Abramsky retained his "Outperform" rating for AAPL, but lowered the target price from US$200 to $175. In his note, he cited primarily economic concerns, but also added that Appleis 3G iPhone estimated for release in the summer could rebuild momentum.
AAPL was down $6.52 in afternoon trading to US$118.50.
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.