Barclays Latest to Cut Apple (AAPL) Price Target

March 6, 2013 12:57 PM EST
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Price: $120.00 +0.18%

Rating Summary:
    60 Buy, 10 Hold, 5 Sell

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    Up: 30 | Down: 30 | New: 23
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Analysts that cover Apple (NASDAQ: AAPL) have been busy adjusting their price target to reflect the seemingly always lower market price. Today was no exception.

Barclays cut its price target on Apple from $575 to $530 but maintained an Overweight rating following meetings with Phil Schiller (SVP of Worldwide Marketing) and Peter Oppenheimer (CFO).

While Apple didn't make any pronouncements about new products or guidance, the company is very optimistic about the general product pipeline and its market position despite controversy over the stock price decline and its growing competition, analyst Ben Reitzes notes.

Reitzes believes Apple will introduce a lower cost phone based on the iPhone 5 and an 'iPhone 5S' in mid-2013. He also said a 5" phablet is needed - and Apple should address this need by C1Q14.

The firm now estimates fiscal 2Q EPS of $9.80, based on 6% y/y revenue growth to $41.63 billion and gross margin of 38.1%. They now estimate fiscal 3Q EPS of $9.04 based on 11% y/y revenue growth to $38.92 billion and gross margin of 38.0%. For FY13, they estimate EPS of $43.75 (consensus = $44.81) based on 16% y/y revenue growth to $181.49 billion (consensus= $182.99 billion) with gross margin of 38.4%.

The firm said the adjustment in its estimates and price target is NOT a results of the meeting.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $431.14 yesterday.

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