Shares of Apple Inc. are slipping in premarket trading Monday, with BMO Capital Markets lowering its price target onexpectations that valuation multiples will decline. Analyst Keith Bachman at BMO cut his price target to $140 from $160. He alsoraised his 2008 earnings estimate to $5.09 a share from $4.90 but cut his 2009 forecast to $6.26 a share from $6.30.
The mean estimates of analysts surveyed byThomson Financial are for 2008 earnings of $5.13 a share and 2009 earnings of$6.30 a share. The stock is down 40% since the end of 2007.
Bachman said that while his estimates stay "roughly the same," he loweredhis valuation multiple assumption given that the company's three growth drivers-- iPods, iPhones and CPUs -- has now turned to one -- CPUs.
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