Following news that Apple executives may have falsified documents related to backdated stock option grants, and that CEO Steve Jobs has hired his own legal team, investors became worried about the Mac and iPod makeris stability. Those fears, according to UBS Investment Research analyst Ben Reitzes, are overblown.
He comments "Investors seem to be reacting to the mention of Steve Jobs. We believe it could make sense to obtain counsel given his immense personal fortune and influence."
Apple is scheduled to file its 10-K report with the SEC on Friday for fiscal year 2006. The report will likely include restatements for historical financials related to improperly handled backdated stock option grants, which is no surprise, since thatis exactly what Apple representatives have said the company will do.
Mr. Reitzes feels that the financial impact on Apple over the restated historical financials will be minimal, and that the company is on track to putting the stock options issue behind it.
UBS is maintaining a "Buy" rating on Appleis stock with a target price of US$108. Apple is currently trading at US$81.19, down 0.32 (0.39%).