Apple (NASDAQ:AAPL) gained the most in months — rising 7.2 percent to $565.73 — on Monday on the back of continued positive assessments from analysts. The company had lost 25 percent of its stock value through last week since closing at a record $702.10 on September 19. In Friday’s trading, it fell to an intraday $505.75 before closing at $527.68.
The rally on Monday was the company’s second biggest of the year after shares jumped 8.9 percent on April 25 following a standout earnings report. It was also the third biggest since the lows of March 2009, according to The Wall Street Journal. Apple is now down 19 percent from its record high of September and up 40 percent year to date.
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Worries had grown stronger on the news of product shortages, recent management changes, growing competition, and concerns surrounding the fiscal cliff. However, the company, which overhauled most of its product line-up ahead of the holiday shopping season, received the backing of several analysts during the high sell-off period. Morgan Stanley analyst Katy Huberty wrote in a note that shipments of the iPhone 5 and iPad mini were going strong and that sales in China and emerging markets such as Brazil would sustain the company’s growth longer term.
Topeka Capital’s Brian White said in a research note on Monday that the share price slip-up was baseless. “The sell-off in Apple’s stock over the past eight weeks has gotten to the point of being ‘insanely insane’ given the depressed valuation, new blockbuster products for the holiday season, the attractive long-term growth opportunities that lie ahead and the company’s ability to distribute significant cash flow to investors,” White wrote. The analyst has a price target of $1,111 on the stock.
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