Jefferies Lowers Price Target on Apple; Slowdown in Growth due to iPhone Saturation; “Buy” Rating (AAPL)

Share |

In a report on Monday analysts at Jefferies cut the price target for tech giant Apple Inc. ( AAPL ) by $100 and hinted that it expects AAPL to see a slowdown of growth in 2013 and 2014.

The analysts dropped the price target on Apple from $900 to $800. The new valuation is a +50% upside to Friday's closing price of $533.25. Despite the price target cut, Jefferies still maintains a "Buy" rating for the iPhone and iPad maker.

Jefferies notes that Apple is continuing to struggle with increased competition in the smartphone and tablet markets; AAPL is expected to slowdown production of iPhones and iPads due to the saturation in the market. However, Jefferies believes the company is still in a position to see attractive revenues and earnings in 2014 and beyond.

Apple shares were down $5.75, or -1.08%, in premarket trading on Monday.

The Bottom Line
Shares of Apple ( AAPL ) have a 1.99% dividend yield, based on Friday's closing stock price of $533.25. The stock has technical support in the $500-$510 price area. If the shares can firm up, we see overhead resistance around the $550-$565 price levels.

Apple Inc. ( AAPL ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by

This article appears in: Investing , Stocks

Referenced Stocks: AAPL

More from

Related Videos

Visualizing Healthcare MG
Visualizing Healthcare MG           
Power on/Power Off IPC
Power on/Power Off IPC              
Spot the Dropout RRC
Spot the Dropout RRC                
Power on/Power Off
Power on/Power Off                  



Most Active by Volume

  • $10.50 ▲ 3.04%
  • $29.22 ▲ 4.62%
  • $16.36 ▼ 0.49%
  • $113.29 ▲ 0.33%
  • $2.39 ▲ 4.82%
  • $5.78 ▲ 0.87%
  • $105.62 ▼ 0.02%
  • $28.42 ▲ 2.53%
As of 8/28/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by