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Apple (AAPL) Stock Down 8% in Last Month; Munster Says 'No Sweat'

December 8, 2009 3:53 PM EST Send to a Friend
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Price: $100.96 -0.82%

Rating Summary:
    55 Buy, 10 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 24 | New: 21
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Piper Jaffray's Gene Munster has just issued a mid-day research note discussing the recent price action in shares of Apple (Nasdaq: AAPL): since hitting a new 52-week high over $208 on November 16th, the stock has tumbled about 8% and is now trading under the $190 level.

The firm admits that there has been some "disagreement on the Street as to what has caused the recent slide", but it believes that "the cumulative effect of several seasonal and industry wide market forces" are weighing on Apple shares. Specifically, Piper points out that Apple's stock historically outperforms in the last four months of any given year, and underperforms the broader markets in the first four months of the year. "We believe investors are leveraging the late '09 outperformance and getting ahead of the early '10 sell-off this year..." Also, the firm mentions that investors have usually purchased the stock "in anticipation of the Macworld conference; however, this is the first year Apple will not participate in the tradeshow."

Considering the above, Piper and Gene Munster still believe that Apple's Q1 "will provide enough upside, driven by Mac, to give investors confidence that the fundamentals are intact."

Piper currently has an Overweight rating and $277 price target on shares of Apple.

To see all the market-moving analyst action on shares of Apple, visit our Analyst Ratings page.



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