How Ripe Is Apple’s Stock?

Arik Hesseldahl

Analyst Steve Fortuna at Prudential Financial thinks Apple’s stock has is about as sweet as its going to get. He downgraded the stock today from “overweight” to neutral, citing Apple’s recent run-up. Thursday it hit a new 52-week high of $62.32 a share before closing at $61.85. As of 2:18 EST today Apple stock was trading down 1.7%. Fortuna’s note says that “We fully expect a strong December FQ1 and full year FY'06 but believe the stock has now fully discounted this reality,” and that “We believe the stock is now priced for perfection.” The growth of iPod sales is going to slow he says, which given that rate has run at between 300% and 400% over the last two years, its not unreasonable. But he also says: “Likelihood of another new hit product like the iPod is low.” Here Fortuna and I part company.

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