Potential Apple Investors Should Wait: Analyst

How high can Apple go, and should you invest?

Black and white versions of the new iPad 2.
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Black and white versions of the new iPad 2.

At a time when even dividend funds are buying Apple shares in hopes the iPad and iPhone maker will use its considerable cash store to give shareholders a dividend, one analyst believes potential investors should wait.

Ashok Kumar, senior technology analyst for Maxim Group, said Apple’s revenue forecast for next year is 20 percent growth, a “moderation” from 44 percent this year and 66 percent last year.

“The near-term drivers are going to be emerging markets, tablet market expansion, and iPhone [market] share gains for the top and bottom line for the company,” he said, with the iPhone the “primary driver of the company’s economics.”

Apple needs to add carriers and increase market share with its existing carriers to catch up with Research in Motion’sBlackBerry smartphone, Kumar added.

So if you’re already invested in Apple, “hold on to it,” he said. “But I think in terms of adding to positions or initiating new positions, I think you would wait for a pullback.”

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Neither Ashok Kumar or his company own Apple shares.