Expert: Apple Stock to Hit $274 in 3 to 6 Months
Edward Zabitsky, CEO of ACI Research in Toronto is one of the earliest bears on Apple (Ticker Symbol: AAPL) stock, rated Apple stock a “sell” in 2010 — at around $200 a share and even called a top in the stock late in 2012 at $700 per share.
You might mock Zabitsky for being too early to be right, since Apple’s stock price still is double what it was when he made that call. But, some good insights as to the challenges Apple started facing several years ago and how those risks are finally coming home to roost are showing in its stock market performance.
Zabitsky’s current outlook for Apple stock is for $274 a share, which he says is “formally a one-year target, but in 3 to 6 months we’re going to see that play out” — His reasons:
“The reason I started to make noise [in 2010] was the rise of Samsung. If you say that now, it’s not challenged.”
“Apple TV: Where is it?”
“China Mobile: Every excuse [for not partnering with it] is gone.”
“People woke up last year, looked at their iPhones and realized that everything that they wanted to do on that phone they could do anywhere else on any of the major software ecosystems.”
“I was surprised when the stock rallied in anticipation of the iPhone 5. It was obvious that Samsung was making inroads.”
“The point is to be loudest at the points where you have more near-term information which gets the clients to act. When the stock is going in the right direction everyone makes a lot of noise. When it goes in the opposite direction, they hide. But the day you need the research and long-term fundamentals is when they’re panicking.”
Since Apple’s 52-week closing high of $705.07 was reached, the stock has fallen to $442.66 as of March 28, 2013 — down $262.41 per share or 37.2%.