Analysts: Apple Estimates Are Too High and 4 New Opinions Investors Must Know Now
Apollo Investment Corporation (NASDAQ:AINV): Wells Fargo downgraded the Business Development Companies sector to Market Weight from Overweight due to valuations and elevated risks in the credit markets. Along with the sector, Wells downgraded Apollo Investment (NASDAQ:AINV), Prospect Capital (NASDAQ:PSEC) and TICC Capital (NASDAQ:TICC) to Underpeform from Market Perform, and the firm downgraded Horizon Technology (NASDAQ:HRZN), PennantPark (NASDAQ:PNNT), THL Credit (NASDAQ:TCRD) and Medley Capital (MCC) to Market Perform from Outperform. The firm has presented Outperform ratings to American Capital (NASDAQ:ACAS), Ares Capital (NASDAQ:ARCC), Golub Capital (NASDAQ:GBDC), Hercules Technology (NASDAQ:HTGC) and New Mountain Finance (NMFC), and it reiterates its Underperform rating on BlackRock Kelso (NASDAQ:BKCC).
Alkermes, Inc. (NASDAQ:ALKS): Citigroup views now as being a solid entry point for Alkermes shares before two pipeline events in 2013. Citi believes that there is a favorable risk/reward into the Phase 2 data for ALKS-5461 in treatment-resistant depression, which is expected during Q2, and the firm adds that the Phase 3 data for ALKS-9070 during the second half of 2013 is the more significant event. The firm views the company’s pipeline as being underappreciated, and it reiterates its Buy rating and a $30 price target on the stock.
Anadarko Petroleum Corporation (NYSE:APC): The company’s price target has been increased by Credit Suisse in order to reflect increased NAV value. The firm stated that Anadarko sees a number of drilling catalysts ahead and expects discounted valuation to fade after the Tronox litigation. The company’s shares are a top idea with an Outperform rating.
Ares Capital Corporation (NASDAQ:ARCC): Wells Fargo removed the company from its Priority Stock List due to elevated credit risk and limited deal activity in Q1. The firm reiterates its Outperform rating on the stock.
Apple Inc. (NASDAQ:AAPL): According to Piper Jaffray, the risk/reward to owning Apple shares is favorable, but the firm believes that the consensus estimates are too high for the March and June quarters. Piper predicts that Apple will report March quarter results within the company’s guidance, but below consensus, while issuing an outlook for the June quarter below expectations. However, the firm thinks that these product announcements have the ability to reaccelerate Apple’s earnings growth from a negative 14 percent during the first half of 2013 to a positive 15 percent in the back half. Piper keeps its Overweight rating and a $767 price target on the stock. Oppenheimer thinks that consumers are likely to wait to buy new iPhones and iPads because of rumors about the launch of new devices this summer. The firm believes that it is possible that Apple will miss consensus estimates for its March and June quarters, and it predicts that the stock will continue to be range bound over the near-term. Oppenheimer reiterates its Outperform rating on the stock.
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