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Citi: Apple Shares Have Fallen Enough

By - Source: CBSNews | B 32 comments

Financial services firm recommends investors buy shares of the smartphone/tablet giant.

After the launch of the iPad Mini and iPad 4, Apple's stock has been experiencing a decline on a daily basis. However, Citi, an American multinational financial services firm, has said the shares have fallen far enough.

Apple shares have dropped by around 18 percent from a record-high of $705.07 in September, but Citi believes that decline won't continue for much longer.

It recommended investors to purchase shares, with the stock expected to reach $675 over the next 12 months. The company said Apple shares usually increases by 20 percent to 50 percent after sell-offs similar to the recent decline.

That said, Citigroup believes the Cupertino firm's share of the smartphone market is at risk due to low-end smartphones, as well as competition from other ecosystems including Android, with Google's platform dominating the market during the last quarter.

Citi also referred to new competition pressuring pricing, the acceleration of product introduction, which can ultimately hurt branding. "Room for error is diminished, placing growing emphasis on execution."

The aforementioned factors are making investors cautious, Citi said, which will likely prevent shares from reaching the previously seen high levels. Consequently, the firm said it's focusing on "incremental earnings changes," and that it's investing during periods of the greatest possible jump in earnings, while it sells shares when estimates depicts the biggest risk.

"This is tantamount to investing in 'product cycles,' and while we expect some investors will bristle at this approach, we believe returns will be optimized employing this approach in future," the company noted.

 

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  • 34 Hide
    tomfreak , November 28, 2012 7:26 AM
    this is from Citi which is one of biggest financial failure in USA 2008 crisis, u believe them?
  • 32 Hide
    esrever , November 28, 2012 7:34 AM
    Zak just want to spread the apple propaganda.
  • 31 Hide
    dark_knight33 , November 28, 2012 7:03 AM
    Citi: Yes, Apple shares have fallen enough. Now, sheep consumers, re-inflate the price with your retirement accounts so we can dump our holdings at a profit before it collapses again.

    P.S. If you have anything left over, pick up some facebook shares too.

    ROFL...
Other Comments
  • 31 Hide
    dark_knight33 , November 28, 2012 7:03 AM
    Citi: Yes, Apple shares have fallen enough. Now, sheep consumers, re-inflate the price with your retirement accounts so we can dump our holdings at a profit before it collapses again.

    P.S. If you have anything left over, pick up some facebook shares too.

    ROFL...
  • 29 Hide
    Skeete_UK , November 28, 2012 7:23 AM
    And who in their right mind would believe some tosh from someone who has probably lost a lot more than you could imagine and they are most likely pumping the shares to prevent further losses. That is like taking advice from an ex-wife on your new marriage !
  • 34 Hide
    tomfreak , November 28, 2012 7:26 AM
    this is from Citi which is one of biggest financial failure in USA 2008 crisis, u believe them?
  • 32 Hide
    esrever , November 28, 2012 7:34 AM
    Zak just want to spread the apple propaganda.
  • 24 Hide
    fuzzion , November 28, 2012 8:20 AM

    Can we fire Zak Islam?
  • 11 Hide
    abbadon_34 , November 28, 2012 8:21 AM
    thank god for short selling
  • 5 Hide
    memadmax , November 28, 2012 8:27 AM
    ROFL someone is trying to stop the shorts so they can collect every last drop of dividend pay out!

    ROFLOLOLOLOLOLOL!
  • 24 Hide
    opmopadop , November 28, 2012 8:55 AM
    "Citi: Apple Shares Have Fallen Enough"

    No they haven't.
  • -6 Hide
    kensingtron , November 28, 2012 9:27 AM
    Chin up Zak Islam

    I don't think its you they hate, I believe it's apple. As you are the harbinger of apple news I believe they are superimposing Apple onto you as a physical entity.

    Keep up the good work iZak ^_^
  • 19 Hide
    ojas , November 28, 2012 10:17 AM
    kensingtronChin up Zak IslamI don't think its you they hate, I believe it's apple. As you are the harbinger of apple news I believe they are superimposing Apple onto you as a physical entity.Keep up the good work iZak ^_^

    "iZak" :lol: 
  • 9 Hide
    Anonymous , November 28, 2012 10:56 AM
    It is a well-known fact that the financial services firms do not speak English. Yes it might look like English, but it is not. For example, when they said "buy", it actually meant "hold". When they said "hold", it actually meant "sell". And when they said "sell", it meant "you are doomed, too late for you buddy".
  • 15 Hide
    freggo , November 28, 2012 11:12 AM
    Talking up a stock, even not below Citi Bank managers.
    Let's face it, Apple is a one horse show and they do not have long term potential outside the US market.
  • 11 Hide
    silverblue , November 28, 2012 11:50 AM
    I'm a bit dubious about an American firm (particularly Citigroup) recommending people to buy shares in another American firm.
  • 12 Hide
    izmanq , November 28, 2012 11:59 AM
    Citi wants to sell their apple share, but they want a better price, so they are kindly advice us to buy apple share for their sake :D  nice :p 
  • 6 Hide
    JamesSneed , November 28, 2012 1:48 PM
    In other news.....

    Samsung: Apple Shares Havent Fallen Enough

    Apple shares have dropped by around 18 percent from a record-high of $705.07 in September, but Samsung believes that decline will continue for much longer.
  • 2 Hide
    JonnyDough , November 28, 2012 2:37 PM
    ZOMG! Diid you hear? Apple is trying to find a buyer for its iTooDumbToNotCopy"iStuff" product line and the worlds LARGEST BROKERAGE COMPANY is brokering the deal. Buy stocks now and make gazillions when they skyrocket!
  • 0 Hide
    Gundam288 , November 28, 2012 2:55 PM
    I still see at least the following shares dropping for a while longer.

    Apple, HP, Best Buy, and a few others. Buying stock in any of those companys is not a smart move right now IMHO. More so in the US with the new rules set to kick in with capital gains taxes for next year.
  • 4 Hide
    bllue , November 28, 2012 2:55 PM
    Hey Citi, what's your percentage stake in Apple stock? lol. This is pathetic. This right here is the signal that Apple is losing steam.
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