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.