Calm Down Investors, Apple's Reported 'Project Titan' Problems Aren't An Issue Long-Term
Apple Inc. (NASDAQ: AAPL) shares are flirting with $100 hours before its December earnings reports hits the wires. One story on investors' minds this week was a report from Apple Insider that the company's electric vehicle division -- Project Titan -- has frozen hiring.
In a new report on Tuesday, J.P. Morgan analyst Rod Hall addressed these concerns, stating it doesn't appear to be a problem. "We don’t see this as a major issue for Apple given the longer term horizon of the Titan project," Hall wrote.
Hall holds an Overweight rating on Apple with a $145 price target.
That didn't stop the analyst from semi-endorsing Apple's rumored involvement in the auto space. "For what it’s worth," Hall admitted, "we do believe that product design and manufacturing companies like Apple have a natural role to play in the world of modularized and increasingly IT driven automobile platforms."
Earlier this month, Tesla Motors Inc (NASDAQ: TSLA) CEO Elon Musk said an Apple car would help the industry. "Tesla will still aspire to make the most compelling electric vehicles, and that would be our goal, while at the same time helping other companies to make electric cars as well," Musk told BBC at the time.
Rather than a threat, Musk said Apple could expand consumer adoption of electric vehicles.
Apple is 25 percent off its 52-week high near $134 per share.
Latest Ratings for AAPL
|Jan 2017||OTR Global||Downgrades||Negative|
|Jan 2017||Guggenheim||Initiates Coverage On||Buy|
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