Apple Inc. (NASDAQ:AAPL)’s stock price is fully-valued and already has expectations for the iPhone 6 and the iWatch built in, Scott Kessler of S&P Capital IQ said in an interview with CNBC’s Investing Edge.
The comment about Apple Inc. (NASDAQ:AAPL) comes as the technology giant is widely expected to debut its next-generation iPhone and a possible smartwatch at their event scheduled for tomorrow. The interview also comes as the company is being scrutinized after an alleged hack on its iCloud service was initially reported to have resulted to the leak of dozens of risqué private photos of celebrities.
According to Kessler, his firm’s official Apple Inc. (NASDAQ:AAPL) rating is “Hold”. Nonetheless, acknowledged that on a relative basis, this rating can be interpreted as a bearish rating on the consumer electronics giant.
“[…] We think that people should be encouraged by what Apple has done and I think, to some extent, anticipatory for what they will announce. It’s just that we think a lot of the good news is already priced into the stock right now,” he explained.
He added by saying that the stock is just 3% off its all-time-high and that his firm thinks that it will be hard for the company to exceed very high expectations. In his firm’s view, Kessler said, they do not suggest people to take action prior to the event on Tuesday.
The senior analyst continued saying that S&P Capital IQ believes the stock is currently fully valued and that it will perform in line over the next year. He said his firm’s 12-month target price for the stock is $103.
Furthermore, any new product from Apple Inc. (NASDAQ:AAPL) like the much-talked-about iWatch will not be a quick game-changer for the company, the senior analyst added.
“Getting back to the wearables concept, we have a hard time believing that Apple is going to suddenly take the world by storm with the so-called iWatch or comparable product. That being said, however, let’s be frank. Over the last 10 or 15 years, I don’t know that a lot of people were expecting a lot from an iPod or an iPhone or an iPad but yet Apple did tremendously in terms of just executing on the vision that they had and delivering products that people did not even realize they wanted or needed,” he said.
Carl Icahn’s Icahn Capital Lp is an Apple Inc. (NASDAQ:AAPL) investor. The billionaire’s hedge fund reported about 52.76 million shares in the iPhone-maker by the end of the first half of the year.