Apple Pre-Game Roundup: Gabelli Downgrades, RBC Ups Target; Kaufman Raises Ests; Citi Sees Huge Margin Beat
With Apple (AAPL) due to report earnings after the close Wednesday for its fiscal second quarter ended March 30, the Street is in full-scale jockeying-for-position mode. The general sense is that the company will beat its guidance easily, while likely issuing a conservative forecast for the June quarter. Here’s a rundown on some of this morning’s moves by the Street:
Gabelli & Co. analyst Robert Haley cut his rating on the stock to Hold from Buy on a valuation basis, noting that the stock is up 40 percent year to date. He is bullish on the story long term, but says that with the stock trading at 20x projected 2010 estimates and 10x EBITDA, there are risks, including “a likely CEO transition in the near-medium term.”