Conversely, BMO Capital Markets analyst Keith Bachman raised his price target, citing concerns over gross margins as being overblown. Bachman raised his price target to $450 from $435, and increased his fiscal 2014 earnings estimates to $42.08 a share. The BMO analyst expects Apple to earn $44.84 a share in fiscal 2015, and rates the stock a "market perform."
"We believe that the long-term trends of greater competition will pressure Apple's growth and/or margins in handsets," Bachman wrote in a note. "However, near term, we think gross margins will increase q/q, helped by the fact that Apple took a material warranty charge in the March quarter, which negatively impacted margins by almost 100 basis points. We would expect the stock to positively respond to favorable margin variance near term."
Google (GOOG) was one name that was bandied about in the article. CEO Elon Musk has said before that an acquisition is "one of the possible outcomes, I suppose," though has said nothing is imminent.Google shares were lower on the day, off 1.02% to $871.94.
Closing prices: BBRY ended Monday up 2.4% to $14.10, AAPL fell 2.7% to $402.54, TSLA rose 2% to $101.49 and GOOG finished down 1.3% to $869.79. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia
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