Kessler's Analysis Sounds Awful (familiar)

Downgrade to hold from buy based on valuation

We believe Apple's fundamentals remain strong on market-share gains in desktops and laptops, success with digital-media players and software, and notable inroads in the smartphone category. Based largely on these successes, we believe Apple should trade at a greater premium to the p-e-to-growth rate of the S&P 500 Technology Sector, and we are raising our 12-month target price to $155 from $135. However, we think our downgrade is warranted by risk-reward considerations, especially with expectations high and Apple scheduled to report June-quarter results on Wednesday.

-Scott Kessler

Scott, you should run for office....

I actually did vote for the $87 billion before I voted against it.

-John Kerry

I'm the master of low expectations.

-George W. Bush