On Monday, despite a healthy stock pop that resulted from the ITC's unfavorable ruling against Samsung, Needham & Company analyst Charlie Wolf downgraded his price target on Apple from $710 to $595.
He did, however, maintain a Buy rating on the new price target, which suggests a 31% upside.
By the analyst's own admission, the cut reflects "a more hostile competitive environment since our previous valuation report in February."
The largest percentage decline-42.3%--was in the Mac segment as the negative impact of tablets on PC sales became increasingly apparent in the first half of the calendar year.
- "The iPad experienced the next largest decline—37.2%--to reflect the decline in the average selling price of iPads as buyers shifted from the 10 inch to the lower margin 8-inch model."
- "The value of the iPhone declined 15.4%, reflecting a more competitive global environment."
Wolf, according to Street Insider, expects Apple's valuation to change yet again by the time of February's 2014 update from Needham & Company.
Source: Street Insider