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Apple overvalued

by on22 April 2009

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Shareprice fall likely says bloke


Apple is
overvalued as a company and can expect its share price to fall as more people wake up to the fact, according to a leading market analyst.

RBC Capital Markets analyst Mike Abramsky said that Apple has gotten a little ahead of itself and has warned investors from buying their shares. He predicted that Apple is about to make a good  good second quarter result today, but said that  valuation of the company has risen faster than its peers.

While he expected near term upside around the refreshed iPhone, the company faces elevated challenges ahead to valuation from slowing momentum, margins, and leadership uncertainty, and prefer to wait on the sidelines, seeking more attractive entry points, Abramsky said.

Apple will continue to underperform as a share investment until there were signs of an upturn in future demand and heard news of a new product or innovation that would offer another growth cycle above expectations.

One of the biggest problems facing Apple was its uncertainty of the health of Steve Jobs and the fact that it is not putting out any new products, he added.
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