Jefferies slices its Apple price target $50 to $320

Analyst Kyle McNealy still rates the stock a Buy.

From a note to clients that landed on my desktop Tuesday morning:

Updating Our Estimates for More FY’20 Coronavirus Impact… We previously lowered our numbers in mid-February after Apple’s negative preannouncement based what we knew about the evolving situation at the time. Our updated numbers now factor in a longer ramp-up time back to normal seasonal production (end of March vs. February) and demand impact that’s worldwide instead of limited to China.

Based on our analysis, we calculate the total negative Q1 impact to be 23% – mainly due to supply side manufacturing disruptions. We also shifted revenue from the September 2020 quarter into the following two quarters to account for the potential for the fall iPhone launch to get pushed back into October…

FY’21 Picture Still Bright… We expect the 5G cycle to bring significant upgrade activity driven by: 1) the aging installed base of iPhones coming up for refresh; 2) a big industry marketing push behind 5G; 3) more significant 5G product differentiation versus prior cycles; 4) higher worldwide smartphone penetration; and 5) Wireless carriers incentivizing upgrades to get better leverage out of their network investments.

Maintains Buy rating and lowers price target to $320 from $370.

My take: It’s like last summer and fall, only turned upside down.

See, for example: Look who just changed their Apple price target (Oct. 31, 2019)

One Comment

  1. Aaron Belich said:
    Still focusing on non-valid features. Tsk tsk… missing the forest for the trees; rinse, repeat.

    0
    March 17, 2020

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