NEW YORK (CNNMoney.com) -- Shares of computer maker Apple tumbled nearly 3 percent Monday after an analyst downgraded his rating on the stock.

Shares of the computer company closed down $2.12 to $74.86 on the Nasdaq.

Citigroup analyst Richard Gardner lowered his rating on Apple (down $2.12 to $74.86, Charts) to "hold" from "buy," saying the stock was overvalued after its strong third quarter.

"Following a 52 percent rise in the share price since mid-July and a 13 percent rise in September alone, we believe these positive drivers are largely reflected in the share price," Gardner wrote in a research note.

He also said the lack of additional new product releases before the end of the year could pressure the stock in the near term.

But Gardner raised his long-term outlook for the stock. He increased his 12-month price target to $85 a share from $80 a share, citing upbeat earnings estimates for fiscal 2007 and 2008.

While Apple shares fell, rivals Dell (Charts) rose nearly 1 percent while Hewlett-Packard (Charts) closed more than 2 percent higher Monday.

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