Shares of Apple Inc. (NASDAQ:AAPL) recovered briefly, floating back above $530 per share before falling again and dipping back under that price. Analysts have been downgrading the stock right and left, although JPMorgan’s Mark Moskowitz is reiterating his Overweight rating.
Apple Inc. (NASDAQ:AAPL) is causing ripples on Wall Street, just as it always does. In recent days analysts have painted a pretty bleak picture of the stock, with numerous major investment firms downgrading shares of Apple Inc. (NASDAQ:AAPL). All those downgrades bright the stock below $500 per share this week for the first time in a while, but it’s not all doom and gloom for the tech giant, according to other analysts.
As the Financial Post points out, one of the main reasons shares of Apple Inc. (NASDAQ:AAPL) are struggling is because of questions about the supply chain. Apple has been reducing orders of iPhone 5 components from its suppliers, so investors have been reacting to those adjustments.
The Financial Times reports that Mark Moskowitz, an analyst with JPMorgan Chase & Co. (NYSE:JPM), believes there’s no need to be concerned about these adjustments. He said that there’s even a possibility that the iPhone 5 manufacturing yields have improved. If that’s the case, the company’s gross margin profile could bounce back up to 40 percent. Moskowitz reiterated his Overweight rating and $770 target price.
In late morning trades Apple shares recovered nightly, shooting back above $532 per share and prompting Forbes’ Panos Mourdoukoutas to title his latest article on the stock, “Apple’s Stock Above $530, Is The Correction Over?” Unfortunately after that article was published, the stock started to fall again, dipping back below $530 per share.
At this hour shares of Apple Inc. (NASDAQ:AAPL) are decreasing again, dropping another 1 percent in afternoon trades to around $529 per share.