Wall Street Defends Apple (APPL) After Yesterday's 18% Sell-Off

September 30, 2008 10:15 AM EDT

Shares of Apple (Nasdaq: AAPL) are higher today after a number of analysts pounded the table on the company following yesterday's dramatic 18% sell-off and the 45% YTD slide.

The main concern that seems to be plaguing Apple is the thought that the consumer slowdown, which the company has so far been immune to, will start taking its toll on the company's growth and earnings power.

Goldman Sachs analyst David Bailey was one of the analysts defending the shares this morning. Bailey said the recent sell off creates an opportunity, saying Apple will outperform the group through the end of the year, driven by iPhone unit upside and a strong product pipeline. They see shares moving back to the $145 level.

Citi reiterated their Buy rating on Apple, but cut their price target from $287 to $170. Citi said while estimate cuts and decelerating growth is not a recipe for outperformance, the valuation after yesterday's 18% sell-off and the 38% decline for the month of September, makes additional downside limited. The firm also said the release of new laptops within 2-3 weeks could catalyze a near-term rebound, and the prices of key components continue to decline which will help margins. Citi also noted that Apple has about $27 per share in cash and $8-$10 in annual free cash flow per share with a lack of debt.

Shares of Apple are currently trading at $109.90, up 4.4% on the session.

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