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UPDATE: Jefferies Downgrades Apple to Hold on Margin Pressure

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Jefferies downgraded Apple (NASDAQ: AAPL) with a Neutral and lowered the price target from $800.00 to $500.00.

Jefferies commented, "Three factors are working against Apple: 1) Smartphone and tablet growth is becoming more concentrated in the low end of the market. 2) Increased competition is leading to shorter product cycles. Apple's margins usually contract during new product launch as yield issues are worked through. A quicker cadence leaves more compressed quarters and less time to harvest profits. 3) Moving away from Samsung, with its huge scale, high quality and excellent execution, is proving difficult and expensive. We now forecast GMs staying below 39% and trending lower."

Apple closed at $514.01 on Wednesday.

Latest Ratings for AAPL

DateFirmActionFromTo
Nov 2014Stifel NicolausMaintainsBuy
Nov 2014Morgan StanleyMaintainsOverweight
Nov 2014JefferiesMaintainsHold

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: JefferiesAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

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