Citi, the analyst firm, says that Apple shares have fallen as far as they will and have nowhere to go but up.
They aren’t alone in this. 51 out of 56 analysts say that Apple is a good bet. Even after their precipitous drop, about 18% from a September high of $705.07 a share. They recommended investors buy. They figured the stock should go up to $675 a share over then next 12 months. The stock has done this in the past and typically rise 20-50% following sell-offs.
It does admit that Apple is facing stiff competitions, especially from low-end cheep smartphones. The tablet market is expected to grow, but likewise will be facing competition. The new competition is pressuring pricing, accelerate product releases and can hurt the company’s branding. The firm says, “Room for error is diminished, placing growing emphasis on execution.”
Investors are being cautious and according to Citi, will likely prevent shares from jumping as high as they have before. The firm, as a result, has said it is focusing on “incremental earnings changes.”