Based on his own over expectations. CNN-Fortune again makes its own news.
From the article Paragraphs 2-5
The run-up was enough for American Technology Research analyst Shaw Wu, who cut his rating on Apple's (AAPL) stock to neutral Tuesday morning after holding a bullish view on the shares for nearly three years.
"This was a very tough decision as we have been bullish on Apple for the past several years," Wu wrote in a note to clients, adding that the stock has more than tripled in that time.
The move seemed to cool some of the enthusiasm around the stock.
Wu said he believes Apple will beat Wall Street analysts' estimates of a profit of
$1.07a share on $6.97 billionin sales for the quarter. Wu actually expects Apple to earn between $1.25and $1.30a share on revenue between $7.1 billionand $7.2 billion.
then CNN Quotes this
We are concerned that expectations may be too high," Wu said. "We are concerned whether it [Apple's report] will be good enough and whether investors will be as forgiving with conservative guidance."So Wu sets the earnings at 30cents more then apple said and almost 20cents over the street, he set the high expectaions himself and CNN fell for it.
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