Citi Cuts Estimates on Apple, Price Target Cut to $170

In the latest in a string of analysts getting spooked about slowing consumer spending, Citigroup (C) analyst Richard Gardner this morning cut his estimates for Apple (AAPL) for this year, 2009, and 2010, and lowered his target price to $170 from $287. The reasons are familiar: an expected decline in disposable consumer income growth will pressure computer and consumer electronics sales. Still, Gardner thinks any concerns he has are priced into the stock following its 18 percent drop yesterday, and he expects outperformance from Apple next year relative to other PC makers, despite a diminished outlook.

Gardner’s revised outlook is for profit of $5.29 on sales of $32.68 billion the fiscal year ending this month, and profit of $5.43 on sales of $35.2 billion next fiscal year.

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