It’s been three years since Berenberg Bank analyst Adnaan Ahmad
began predicting doom for Apple, setting a split-adjusted price
target of $60 a share and — five months later — flipped the
stock’s rating from Buy to Sell.
This spring, with the iPhone 6 selling like hotcakes and the
stock trading above $124, Ahmad raised his target (to $85) but
not his rating. “We sense,” he wrote, “that the company is
over-earning, over-loved and, in our view, the stock should be
Email from Ahmad this morning:
As you may already know, Daud Khan and I have unfortunately been
let go at Berenberg. It has been a pleasure debating and
discussing the sector with you all. I have strived to be as
honest, independent and give a high level of integrity in my
research as possible throughout my career. As many of you know, my
views have been controversial in the global tech space and I have
taken a fair amount of abuse but I have enjoyed the two way
Where by “controversial” he means “totally wrong”.
Ahmad can take solace in the fact that his record doesn’t hold a candle to, say, Per Lindberg’s. In 2010 Lindberg was, according to this report in The Globe and Mail, “the only sell-side analyst covering Apple Inc., out of roughly 40, who has a ‘sell’ rating on the company”. As I type this today, Apple’s stock price is about 8 times higher today than it was in 2009 when Lindberg called it a “sell”.
★ Monday, 28 December 2015