Jefferies Slashes Apple Price Target Amid Supply Chain Issues
Apple's stock has taken a hit after Jefferies Financial Group lowered its 12-month price target to $263.66, down from $285.56. This represents a decrease of about 7.67% and suggests a potential 14.15% downside for Apple's current stock price of around $307.11.
The move comes after the firm's head of China Technology, Telcom, and Software Equity Research, Edison Lee, downgraded Apple's rating to 'Underperform' from a 'Hold'. The decision was made due to production yield issues identified in the supply chain for Apple's planned all-glass iPhone, which has been canceled.
Jefferies also cut its fiscal 2028 and fiscal 2029 earnings-per-share (EPS) estimates, citing rising memory costs. Apple is reportedly seeking approval to tap China's memory chips from ChangXin Memory Technologies for use in iPhones, MacBooks, and other devices.