UPDATE: Citigroup Downgrades Apple to Neutral on Near Term Supply Chain Cuts

Citigroup reduced its rating on Apple AAPL from Buy to Neutral and reduced its price target from $675 to $575. Citigroup said, "[O]ur previous Buy rating was trading oriented, reflecting our expectation for a near-term rally (after a substantial sell-off) on strong iPhone5 sales. However, near-term supply chain order cuts, while inconclusive in nature, bring into question the strength of iPhone5 and refocus investors onto risks in the Apple story. As such, we see the likelihood of any near-term rally as diminished, and, in keeping with our original thesis, downgrade the shares to Neutral. Apple closed at $509.79 on Thursday.