According to Elmer-Dewitt, Gene Munster recent note to investors aims to lower expectation ahead of earnings. He pointed out that the Cupertino-based company is going through a tough period at the moment.
“With March almost over and the quarter ending on Saturday, Piper Jaffray’s senior Apple analyst issued a note to clients Tuesday warning that the company will have to get through a dry patch before things start looking up again, and that Wall Street’s lowered expectations are still too high,” Philip Elmer-Dewitt writes for Fortune.
Elmer-Dewitt published several key points from Munster report:
“All in all, it’s a pretty pessimistic outlook from one of Apple’s most loyal and enthusiastic supporters,” Elmer-Dewitt reports. “It’s almost as if Munster is deliberately lowering expectations so that Apple can deliver a positive surprise when it reports its Q2 2013 earnings next month.”
However, all is not yet lost, Munster apparently ended the report on an upbeat note:
[quote] We believe the risk reward to owning shares of AAPL is favorable given the back half of the year will likely have several product announcements that should reaccelerate earnings growth from a negative 14% in the first half of 2013 to a positive 15% in the back half. While we believe that current Street numbers are too high for March and June, we view the risk around the quarter and guide as small as the March report and June guide will likely mark the turning point as investors look to the back half opportunity with new product launches. We reiterate our Overweight and $767 price target.[/quote]