Where Will Apple's Stock Be in One Month?
NEW YORK (TheStreet) --Apple(AAPL) shares have had an incredible run this year, gaining more than 30% since 2012 started. The share price performance could be a different story after it announces the next iPad later today.
BMO Capital Markets analyst Keith Bachman recently looked at the share price performance one week, one month and three months after past iPhone and iPad product launches.
Following the launch of previous iPads, Bachman noted Apple shares were down 1% on average one week after the event, but were then up 1% a month after the launch. Three months later, Apple shares on average were 13% higher.
Apple shares have fared slightly better following iPhone launches. On average, the stock has gained 2% a week after the event, but were then flat a month later. The share price was then up an average of 5% three months after the launch.
"For the iPad, AAPL stock performance has been mixed leading up to the product launch, but has traded slightly up the day of launch. However, shortly after the launch, the stock has traded slightly down," Bachman wrote in his report. He rates shares outperform with a $590 price target.
Apple's stock has been on a tear over the past three months, up 40% as Bachman noted in his report on Monday. He believes it is likely that Apple's stock "could consolidate recent gains post the iPad launch this week." Apple's stock took off in February, gaining nearly 20% and bursting past the $500 per share mark. The shares hit an all-time high of $548.21 on March 1, and closed Tuesday at $530.26.
Bachman also believes there is downside risk to the stock if the iPad is not Long Term Evolution (LTE) compatible. There is increasing speculation that the third version of the iPad will be LTE-compatible, and lack of this feature would be a disappointment that could hamper sales.
We want to hear from you -- Do you think Apple's stock will be higher or lower one month from now? Check back tomorrow afternoon for the results of the poll.
Interested in more on Apple? See TheStreet Ratings' report card for this stock.
--Written by Chris Ciaccia in New York
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