Citi: Apple Shares Have Fallen Enough

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.

 

Contact Us for News Tips, Corrections and Feedback

Create a new thread in the US News comments forum about this subject
This thread is closed for comments
32 comments
    Your comment
    Top Comments
  • tomfreak
    this is from Citi which is one of biggest financial failure in USA 2008 crisis, u believe them?
    34
  • esrever
    Zak just want to spread the apple propaganda.
    32
  • dark_knight33
    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...
    31
  • Other Comments
  • dark_knight33
    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...
    31
  • Skeete_UK
    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 !
    29
  • tomfreak
    this is from Citi which is one of biggest financial failure in USA 2008 crisis, u believe them?
    34