Munster: Apple ‘Fears Outweighing Fundamentals’

8:52 am, September 30th, 2008, Ed Sutherland

Did investors react too quickly to analyst comments which sent Apple shares tumbling 18 percent Monday? Add Piper Jaffray to the list of analyst firms now calling for calm.

“We recognize investors do not see light at the end of the tunnel as market fears appear to be outweighing fundamental analysis” Piper’s Apple analyst Gene Munster wrote Tuesday.

Those fears - not including the Dow plummeting 777 points - were spurred by a spate of downgrades of Apple stock as analysts said slowing consumer sales could derail the Cupertino, Calif. company.

Munster said Piper Jaffray remains confident in Apple, maintaining a “Buy” rating and a $250 share price target.

The analyst said numbers showing Mac growth slowing from 43 percent in July to 23 percent in August reflected August 2007, a time when Apple unveiled its new iMac.

Piper Jaffray instead expects 40 percent Mac growth in fiscal 2008 and 19 percent in fiscal 2009.

Munster said Apple “is better positioned than other tech players to weather” the current economic problems.

Earlier today, Goldman Sachs analyst David Bailey said Monday’s pullback “more than captures the concerns over Mac growth in a weakening spending environment.”

Citi also stuck with its “Buy” rating for Apple, but cut its target price for shares to $170 from $287.

On Monday, both Morgan Stanley and RBC Capital used talk of slowing consumer sales for cutting Apple’s target price and downgrading the stock.

Apple shares were up almost 6 percent to $111.

Posted by Ed Sutherland in Apple, News | Comment on this article