Banc of America Downgrades Apple, Raises Target

Banc of America, much like Bear Stearns, is concerned about Appleis valuation, according to MarketWatch. The investment firm is changing its rating from buy to neutral. Analyst Keith Bachman thinks the reward vs. risk profile for Apple is now more balanced after the stockis rise, coupled with concern over long-term iPod sales and operating margin expectations by investors.

Overall, Mr. Bachman feels Appleis processing unit business is tracking well, commenting "We believe Appleis fundamentals are strong."

Despite concerns over valuation, Mr. Bachman raised his target price for Apple from US$52 to $76.

Appleis stock is trading down from its closing high of $74.98 on Tuesday. Currently, it is at $72.84, down 2.14 (2.85%)

<!--#include virtual="/includes/newsite/series/stockwatch.shtml"-->