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  • 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.

    Jefferiesís 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.

    Source: Fortune
    This article was originally published in forum thread: Jefferies Cuts Apple Target to Just $425 started by Michael Essany View original post
    Comments 3 Comments
    1. bigboyz's Avatar
      bigboyz -
      Ummm...guess they didnt get the memo that Apple has finally gained ground in a country of over a billion people. Come back when your research is up to par.
    1. hogcia's Avatar
      hogcia -
      Apple needs a good kick in the ***, this is what happens when you don't give people what they want. A larger screen alone would have probably saved them. Its gonna be a bad 12 months for Apple, just look at the number$ people. I will be waiting till next year for there new larger phone, I just hope they can recover. Samsung and Microsoft will take advantage of this for sure.
    1. fleurya's Avatar
      fleurya -
      Looks like someone plans to short the stock after making negative waves.

      Any production slowdowns will be taken care of the they will sell as many as ever. It's really a minor issue to cut price on.