SG Cowen cut its investment opinion on Apple Computer (AAPL) to neutral from positive, citing the stock's valuation.
Analyst Richard Chu says that as a result of the Mac/iPod survey, he's more cautious on the stock in the near term. He noted that the shares are up 45% from mid-July, when the survey showed positive June/July inputs. He believes the new survey suggests strong iPod competitive momentum, but overall consumer PC buying plans turned decidedly more cautious. He notes that he has no price objective but believes over the next three to six months the stock is relatively balanced and neutral. He expects 37 cents fourth quarter earnings per share, and $1.43 earnings per share in fiscal year 2005 (ending September).