ABG Sundal Collier Reiterates on Apple on Approaching Points of Saturation

In a report published Tuesday, ABG Sundal Collier analyst Per Lindberg reiterated a Sell rating and $400.00 price target on Apple (NASDAQ: AAPL).

In the report, ABG Sundal Collier noted, “In reaction to the fourth quarter results, we are likely to modestly lift sales and earnings estimates for the quarters immediately ahead. The combined effects of the reduction in the number of outstanding shares and use of cash should have no material influence on our valuation assessment. To us, Apple no longer deserves a rich multiple for the simple reason that its sales growth is pedestrian, its net income falls and its reliance on two sensationally popular products – the iPhone and the iPad – is exceedingly high. As all forms of consumer electronics, points of saturation will eventually transpire. Given the rise in competitive pressures, Apple encounters serious dilemmas. Unless it slashes its price levels – at the expense of profitability – it will continue to cede market share to rivals. Hopes that an 'iTV' and an 'iWatch' can 'move the needle' should dissipate considering the revenues to protect.”

Apple closed on Monday at $529.88.