Banc of America Securities analyst Kurt King has upgraded Apple to a strong buy from a buy position, Reuters reports.
Kurt expects "positive industry trends to make an impact" on the company’s forthcoming earnings report, due April 19.
Apple shares fell to $109.25 yesterday as Nasdaq continued to fall, heading towards its 200 day moving average of 3400 to close at 3769. Investors continue to sell, in response to the Microsoft judgement which reinforced the current opinion that tech stocks are overvalued. However, indications are that many stocks are being oversold, meaning bargains are available to the risk-taking investor. Microsoft closed at $79.375.
Uncertainty With Microsoft’s stock downgraded recently by Goldman Sachs analyst Rick Sherlund, and Motorola’s failure to accurately predict its profit margins on cell phones, combined with investors ready to harvest the profits made by Nasdaq’s recent gains, its an ominous time for IT and dot com firms. Analysts reassure investors that, while a revaluation may be in progress, the IT sector is not lacking in intrinsic value. Meanwhile the wait for Nasdaq to level out continues.
Tumbling stock values on Nasdaq have also affected other indices worldwide, including the Dow. The current wave of sell-offs is being described as a "panic" by some US-based news reporters. Meanwhile, comments by Federal Reserve Governor Laurence Meyer indicate that the US central bank is set to increase interest rates soon, which will serve to further depress the market.