Citigroup Downgrades Apple to “Neutral”; Cuts Price Target; Cites iPhone Supply and Demand Issues (AAPL)
On Monday analysts at Citigroup downgraded Apple Inc. ( AAPL ) and cut its price target due to mixed results in iPhone demand as the company releases it in new markets.
The firm downgraded Apple from "Buy" to "Neutral" while also cutting its price target from $675 to $575. The new target is a +13% upside from Friday's closing price of $509.79.
Citigroup analyst Glen Yueng notes that there are demand issues as Apple rolls out the release of its iPhone 5 to new markets. The company also faces competition from companies such as Samsung, which is diminishing the hype around the latest iPhone. Apple has cut its production of the iPhone, giving analysts concerns about the short-term future of shares.
Apple shares were up $1.20, or +0.23%, in premarket trading on Monday.
The Bottom Line
Shares of Apple ( AAPPL ) have a 2.08% dividend yield, based on Friday's closing stock price of $509.79. The stock has technical support in the $493-$500 price area. If the shares can firm up, we see overhead resistance around the $541-$547 price levels.
Apple Inc. ( AAPL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.