Investors with a time horizon of more than six months should begin picking up shares of Apple now, says one fund manager.
Don Lato, President, Padlock Investment Management was on BNN’s Market Call with host Mark Bunting Friday to talk about the struggling tech giant.
Lato says Apple’s slide is overdone, and a catalyst such as a new product announcement could reverse the company’s fortunes on Wall Street.
“At ten times earnings, with tremendous R&D capability behind it and the ecosystems that is going to keep their existing customers there, now is the time to be buying Apple,” he says.
But what about timeline?
“Maybe for the not the next since months, even though it wouldn’t surprise me to get a big move, but certainly over the next two or three years,” says Lato.
The Padlock Investment Management boss notes that a move to just twelve times earnings would move Apple back above the $600 mark -almost $200 higher than Friday’s close of $417.42. “Not a huge leap of faith,” he says. “If you step in here you are going to be rewarded,” he added.
Apple will report its Q3, 2013 earnings on Tuesday, July 23rd, after market close. The company has provided guidance that says it expects revenue of between $33.5 and $35.5 billion and gross margin between 36% and 37%.
At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
Ahead of the company's first quarter results, Beacon analyst Russell Stanley thinks Ascend Wellness (Ascend Wellness Stock Quote, Chart, News,… [Read More]
Following the company's fourth quarter results, Paradigm Capital analyst Daniel Rosenberg has cut his price target on Snipp Interactive (Snipp… [Read More]
Following the company's first quarter results, Roth MKM analyst Chip Moore remains neutral on Generac Holdings (Generac Holdings Stock Quote,… [Read More]