Apple’s (NASDAQ:AAPL) Thursday started on much the same note as its Wednesday ended, with the stock continuing to lose value in premarket action. The start of trading, though, has resulted in some positive development for the company finally, and going along with the optimistic buzz is an analysis from S&P Capital IQ analyst Scott Kessler. Kessler reiterated his Strong Buy rating on Apple stock in a research note that followed Wednesday’s more than six-percent slide for shares.
“Apple was down notably yesterday and is lower again today without any obvious negative news,” Kessler wrote, according to Forbes. “We have noted concerns about competition, China, selling ahead of the possible ‘fiscal cliff,’ and stock-specific technicals. However, we continue to see Apple as a likely standout this holiday shopping season, with a stable of new and what we consider best-in-class products, including the iPhone 5, fourth-generation iPad, and iPad mini.”
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The recent stock slump has been largely blamed on the growing strength of Apple’s many rivals, both in the global smartphone and tablet market. On Wednesday, some negativity was generated after Nokia (NYSE:NOK) announced a distribution deal with China Mobile (NYSE:CHL). There were also worries that margin requirements for the stock had being pushed up, and that Apple was headed toward a technical death cross, which is reached when a stock’s 50-day simple moving average goes below its 200-day SMA.
Kessler was not worried. “We also think Apple could more proactively leverage its $122 billion in cash/investments,” he added. “We see the recent sell-off as an enhanced buying opportunity.”
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