Jefferies Slashes Apple Price Target, Citing Manufacturing Woes and Valuation Concerns
Apple's stock stalled on Friday morning as Jefferies downgraded the tech giant to 'underperform' from 'hold' and cut its price target to $263.66. Analyst Edison Lee made this move, citing concerns that Apple's valuation is running ahead of what the next iPhone cycle can deliver.
The potential cancellation of an all-glass anniversary iPhone due to manufacturing yields becoming a problem is another concern for investors. Apple never officially announced this device, but Jefferies believes it could have been a game-changer in terms of pricing and sales.
Jefferies' downgrade has not had a significant impact on the stock price, with shares trading at $305.26, which is 7.79% above GF Value. Investors remain optimistic about Apple's ability to deliver, but the company needs to prove them right with stronger iPhone pricing and healthier margins.