Forget the Bruises -- Apple Looks Appealing

The consumer spending slowdown, although a headache for technology giant Apple(AAPL Quote), may present a buying opportunity for shrewd investors.

That was the message from investment analysts Tuesday, who explained that tech investors could actually reap the benefits of weakening iPhone demand and an increasingly uncertain economic climate.

Citigroup Global Markets, for example, lowered its Apple earnings estimates for fiscal years 2009, 2010 and 2011 to reflect more conservative consumer spending.

"Soft fourth calendar quarter iPhone shipments [in 2008] and conservative guidance [in the first calendar quarter of 2009] could place pressure on the shares around earnings, but we view weakness as a buying opportunity," wrote Citigroup analyst Richard Gardner, in a research note.

Gardner lowered his 2009 earnings estimate from $5.13 to $4.78 and his 2010 expectation from $6.25 to $5.37. For fiscal year 2011, the analyst cut his earnings target from $7.02 to $5.89.

Apple's shares slipped 95 cents, or 1.1%, to $87.71 Tuesday, while the Nasdaq rose 0.5%. Shares were trading at 85.79 at midday Wednesday.

Gardner feels that the stock is "compelling" at its current levels. With the firm due to report its first-quarter results next week, investors should check out Apple, according to the analyst.

"If the shares pull back $7 to $8 around earnings -- as implied by the options -- we would be aggressive buyers," wrote Gardner.

Those sentiments were echoed by Barclays Capital analyst Ben Reitzes, who described Apple as the best long-term IT hardware growth story.

"Despite a weak economy, we believe Apple's valuation is compelling given about $27 per share in cash and prospects for $9 per share in free cash flow for fiscal year 2009," he wrote in a research report.