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 Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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