Someone at the Apple (AAPL) Bar & Grill called for the last round just before closing and the research group at Bank of America wanted a drink.
Yesterday the bank started is coverage with a "buy" and a price target of $160. This is for a stock that has already traded just below $150. The reason for the rating was due, in part, to the theory that the iPhone will have a margin of 60%.
But, breaking its down, B of A has done investors no good service and Wall St has to wonder whether this kind of call undermines how investors view research operations.
At a price target of $160, Apple’s stock has to gain very little to top the figure. But, there is always the possibility that it could fall. Advising investors that they might make an 8% profit over the stock’s recent high when measured against the risk that the stock could drop seems a crass and opportunistic call.
But, maybe the stock will hit $160.
Douglas A. McIntyre
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