Citigroup Raises Apple's Rating to Buy

Analyst Richard Gardner says the company's shares have cheapened recently, but new products will fuel a rebound in the coming months

Citigroup upgraded Apple Computer (AAPL) to buy from hold, explaining that the technology company's share prices have cheapened to $63 from $85.

Analyst Richard Gardner says Apple's prices fell amid factors such as disappointing January quarter guidance and flash memory product order cancellations -- but new products will be unveiled near the company's 30th anniversary in early April. Gardner expects Apple share prices to rebound starting in the June quarter. He cut his $4.8 billion revenue and 48 cents earnings per share (including options expense) March estimates to $4.5 billion and 45 cents per share. But he keeps his $82 stock price target.

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