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.
Other reasons for the downgrade include:


  • "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