Analyst to AAPL Investors: Chill Out, Think Holistically

Analyst Brian Marshall of Gleacher & Co. has some advice for AAPL investors: Don’t get “tied around the axel” and think holistically about the company. In a research note to clients obtained by The Mac Observer, Mr. Marshall called drop in AAPL’s share price following Monday’s earning report a “knee-jerk” reaction.

In After Hours trading on Monda, Apple’s stock lost more than 5.6% following the release of Apple’s earnings report and conference call with analysts. The stock has performed better during Tuesday’s regular session, trading at US$308.69, down $9.31 (-2.93%), on heavy volume of 35 million shares trading hands, twice the average volume for a full trading day.

Yahoo! Finance Chart

Trading so far in the Tuesday session
Source: Yahoo! Finance

Mr. Marshall wrote, “In our view, the ‘knee-jerk’ reaction to the print is evidence that some investors are getting ‘caught up in the details and tied around axle’. We believe the investment community must take a more ‘holistic’ approach to analyzing trends at AAPL going forward considering the size of the company (~$90bil+ in CY11 revenue).”

Mr. Marshall reiterated his “Buy” rating on the stock, and upped his target price from $345 per share up to $355.

“Apple remains the best technology company on the planet with numerous catalysts on the horizon (e.g. CDMA iPhone ramp, iPad, etc.) and no business model issues,” he wrote.

He also pointed out that Apple’s cash on hand, which currently sits at $51 billion, works out to $55 per share.

*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.