Apple Gets Cut
With a more than 9 percent drop in after-hours trading on Wednesday night and a similarly vast plunge before markets opened on Thursday, investors have made very clear what they think of Apple’s (NASDAQ:AAPL) underwhelming earnings results. Most analysts covering the tech company also took stock of the situation and reacted in much the same way — with a palpable easing of confidence.
According to Reuters calculations, as many as 14 brokerage firms have announced trimmed price targets on the stock since the earnings came. The average cut was worth $142, taking the average price target on Apple to just under $600 at $599.
Among the key cuts was the one from ultra-bullish Brian White of Topeka Capital, whose high $1,111 target was shot down to $888. White had stayed firm on his industry-high number through the continuing fall in Apple’s share price starting mid-September, but the lackluster earnings report finally prompted him into action.
Other key firms announcing cuts included Barclays Capital, Mizuho Securities, Credit Suisse, Deutsche Bank, Raymond James, Jefferies & Co., Robert W. Baird & Co., and Canaccord Genuity.
Jefferies even downgraded its Buy rating on the stock to a Hold while slashing its share price target by a massive $300 to $500. Apple closed the trading day on Wednesday at $514, but that was before the earnings blaze hit.