Apple Stock Drops on Jefferies Downgrade, Target Price Cut

Apple's stock price dropped by 1.5% on Monday following a downgrade to Underperform by Jefferies and a reduced target price of $263.66.

The target price is 14.5% lower than Apple's most recent closing price of $308.26, which raises concerns about the company's ability to maintain its product gross margin amid rising memory costs.

Jefferies' supply chain checks indicate that Apple had cancelled plans for an all-glass iPhone, which would have been a major step towards higher-priced iPhones, but Apple declined to comment on the matter.

While some analysts are bearish about Apple's future prospects, others remain optimistic and predict double-digit growth. For example, HSBC and Morgan Stanley forecast targets of $366 and $360, respectively, while KeyBanc is more pessimistic with a target price of $250.