Apple: Should you buy the shares?

Apple shares have been tumbling after the technology giant posted weaker-than-expected iPhone sales over Christmas. The shares are now down by a third since their peak at $705.07 in September.

The news prompted Wall Street analysts to take a red pen to their price targets, prompting investors to flee the shares in droves. However, the falls could have presented a buying opportunity and now is a good time for UK investors to be looking at foreign investments, as Sterling looks set for a period of weakness.

Were the results so bad that such as slump is warranted? Probably not.

Apple’s 2013 earnings multiple is just 10 compared with Centrica on 12.5 and caterer Compass on 16.3. The average price target of Wall Street analysts is still $650 a share, some 41pc above the current price.

With currency markets working in the favour of UK investors and the valuation now so low, it looks like a good time for UK investors to take a bite out of Apple shares.

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http://www.telegraph.co.uk/finance/markets/questor/9824696/Apple-Should-you-buy-the-shares.html