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Big banks pump the brakes on Apple following huge earnings miss

Apple (AAPL) was and still is the darling of Wall Street. Sure, investors get the jitters from time to time, but sky-high price targets and big long-term bets are the norm for the world’s most profitable smartphone maker. Apple reported its third fiscal quarter results on Tuesday, and the company shocked the Street when it missed earnings expectations by a huge margin. Initial reactions were predictable — shares of Apple stock dipped more than 5% in after-hours trading on Tuesday — and now some big banks are pumping the brakes… albeit temporarily.

Price targets on Apple’s stock are dropping all over. Some analysts like Canaccord Genuity’s Mike Walkley, who lowered his price target by $3 to $797, are making minor adjustments. A number of analysts at big investment banks are being more cautious with their clients, however — Morgan Stanley cut its price target on shares of Apple stock from to $720 from $738, and Goldman Sachs slashed its target to $790 from $850.

Plenty of analysts are holding their ground as far as Apple’s stock is concerned. Noted Apple bull Brian White at Topeka Capital Markets maintains his $1,111 price target, for example, and the logic appears sound: Apple had a slow June quarter and September could be bumpy as well, but Apple’s first fiscal quarter is when the real party starts.

Of course, everyone on the planet is predicting a monster December quarter to kick off fiscal 2013 for Apple. A brand new redesigned iPhone… An “iPad mini“… new Macs… RBC analyst Amit Daryanani calls Apple’s second and third fiscal quarters the “calm before the storm,” and all signs point to another massive first quarter for the Cupertino, California-based company.

Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.