After weeks of beatings, Apple stock on Monday got a lift from an analyst who said the stock is now “overly discounted.”
“We expect Apple’s financials to remain relatively healthy, even in the face of an economic downturn,” Bernstein Research analyst Toni Sacconaghi wrote Monday in a research note.
Apple shares gained $8.41, or 8.7 percent, to $105.21 after the report.
Despite worldwide economic woes, Bernstein expects Mac sales to remain strong as Apple continues to edge ahead in the market. That’s in part because many are watching the Mac maker for an upcoming Macbook announcement with expectations for Apple to offer a low-cost model priced around $900. Such a move would help Apple gain share in a more cash-strapped consumer environment.
Bernstein, which makes a market in Apple securities, lowered its price target on Apple to $135 from $175.