What’s Hampering Apple? Analysts Dig In
After seeing shares of Apple (NASDAQ:AAPL) dip below $400 on Monday after analysts at Jefferies lowered their price target due to supply chain checks, other analysts have weighed in with their opinions of what the iPhone maker needs to do to get back on track.
Trip Chowdhry at Global Equities believes that a large part of the problem comes with retaining employees, according to CNBC. “The stock price cannot be turned around if Apple can’t attract people,” Chowdhry said. “The employees should come ahead of shareholders. Apple needs to treat their employees like gods.”
Chowdhry said that there were a growing number of employees who looked at Apple’s stock price and decided to ditch the sinking ship. They were moving on to greener pastures such as Google (NASDAQ:GOOG), LinkedIn (NYSE:LNKD), Facebook (NASDAQ:FB), and Hewlett-Packard (NYSE:HPQ).
“They look at the stock price and they feel that the future of Apple is bleak,” Chowdhry said. “They feel their talent could be more useful elsewhere than at Apple.”
Gene Munster, managing director and senior research analyst at Piper Jaffray, believes that Apple needs to start rolling out some of these highly anticipated new products, such as the cheap iPhone and the iWatch.
“The morale is partially tied to the stock. That ‘s why I think it keeps coming back to these products. And the reality is that if these products are what we expect them to be, that should get the stock going and that should be good for morale,” Munster said.
Whatever the reason for Apple’s struggles, it still hasn’t persuaded Munster and Chowdhry from leaving their price targets for Apple high. Chowdhry currently has a $650 price target while Munster’s is at $655.