Few companies have enjoyed the level of bullish support among Wall Street’s brokers as Apple Inc. /quotes/zigman/68270 /quotes/nls/aapl AAPL , but another round of disappointing results and forecasts from the once-hot company on Wednesday may temper some of the sell-side enthusiasm for the stock.
- Reuters
- Apple CEO Tim Cook with the Foo Fighters.
The reactions are expected to begin flowing in on Thursday morning, as analysts will have to grapple with their estimates and ratings for a stock that has already shed more than one-quarter of its market value and appears poised to drop another 10% – to a level not seen in nearly a year.
Wednesday’s report pushed Apple shares down to around the $460 mark in after-hours trades. That is below all but one of the current price targets set by analysts, according to Thomson Reuters. The median target on Apple before the report was $725, and a dozen analysts had targets at $800 or higher — with $1,111 being the highest.
Ratings will also be closely watched, as 82% of covering brokers rated Apple as a buy prior to the report. Of 57 analysts covering the stock, only seven had neutral ratings and three carried sell calls, according to Thomson Reuters.
-Dan Gallagher