Jefferies Cuts Apple Target to Just $425
Apparently, Carl Icahn's comments this week regarding the tremendous investment opportunity afforded by bargain-priced shares of AAPL didn't sway analysts at Jefferies today.
On Friday, as AAPL slumped yet again on NASDAQ, word surfaced that investment banking giant Jefferies has cut Apple's price target to $425. As of Friday afternoon, AAPL was trading at $465.41.
Jefferies’s Peter Misek is reiterating his "Hold" rating on Apple, asserting that Apple has been having production problems with the iPhone 5S fingerprint sensor.
"Our checks indicate that suppliers have started to receive build plan cuts," Misek said today. "We think poor fingerprint sensor yields are the cause. The 5s has few changes vs. the 5 and is using the same process node for the A7 app processor. Our checks indicate that the fingerprint sensor yields have been terrible and are the likely culprit for the H2 build plan cuts."
"We slightly raise our CQ3 EPS estimate from $7.58 to $8.14 (St $7.65) due to higher total shipments based on our sell-through checks (32M vs. 30M prior; St 31M)," he told investors. "But our CQ4 iPhone revenue estimate remains ~20% below St."
Also not helping to boost Wall Street expectations is the not-so-cheap price tag slapped on the "cheap" iPhone 5C.