In a new note, he says:
Last night, Apple reported 1QFY13 results and offered up a 2QFY13 sales outlook that was inline with our model but fell short of the Street's estimates, while margins are expected to be below our projections. As such, we are slightly tweaking our sales estimate higher but taking a modest haircut to our EPS projection. With Apple down 10% in after market trading, the stock is trading at less than 6x (ex-cash) our CY14 EPS estimate and we believe there is quite a bit of bad news priced into the stock at current levels, while estimate resets lower the bar for the future. At the same time, we believe the profit and sales cycle will reach the bottom in 2QFY13.
...
Given the decline in the share price, we are lowering our 12-month price target to $888.00 from $1,111.00 for Buy-rated Apple, which is based on over 13x (S&P 500 multiple) our interest expense/income adjusted CY14 pro forma EPS estimate plus net cash per share of $144.75. This equates to a straight P/E of just over 15x our CY13 EPS estimate, and is well below the mid-20x's multiple of 2006-2010.
There are going to be lots of notes today on Apple.
Earlier Nomura said that the company was entering its "ex-growth" phase.
Source: http://www.businessinsider.com/topeka-lowers-its-apple-price-target-from-1111-to-888-2013-1
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