Apple (NASDAQ:AAPL) closed down 1.11 percent at $536.88 on Wednesday to continue with its shareholder-depressing trend over the last few days, but there was some good news for the company. S&P Capital IQ analyst Scott Kessler upped his rating on Apple shares to Strong Buy from Buy.
While Kessler noted that the stock had dropped more than 22 percent of its value over the past almost-two months, he added that the ongoing three-month period was likely to bring in a lot more good news for the tech company. “We now believe it is a compelling value, especially as the holiday shopping season is about to begin,” Kessler wrote in research note on Wednesday.
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The analyst added that he believed Apple would benefit from a number of recent product refreshes, including that of the highly important iPhone as well as the iPad line. “We also think the new iPad mini will contribute to share gains,” Kessler wrote. “We acknowledge some slip-ups and management changes of late, but see the fundamental story as intact. We also believe Apple could decide to allocate additional capital to dividends and buybacks.”
The analyst maintained his $700 price target on the shares.
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