Apple retreats in wake of Jeffries’ target price cut

“Apple after the stock’s price target was slashed to $425 from $450 at Jeffries. The iPhone maker’s 2014 earnings-per-share estimate was also cut to $37.95 from $38.78,” Sue Chang and Saumya Vaishampayan report for MarketWatch.

“‘Apple had two tough choices with the 5C pricing and the 5S sensor and opted for the higher price/lower market share option for both,’ said Peter Misek at Jefferies said in a report,” Chang and Vaishampayan report. “Misek added that supply constraints of fingerprint sensors for the 5S forced Apple to cut back on production in the coming months. ‘Our checks indicate that the fingerprint sensor yields have been terrible and are the likely culprit for the [second-half] build plan cuts,’ he said.”

MacDailyNews Take: Yeah, his “checks.” Pfft.

Chang and Vaishampayan report, “The analyst notes that Apple’s calendar fourth-quarter production plan for iPhones was scaled back to a range of 48 million to 60 million units versus 55 million to 60 million, due mostly to the 5S.”

Read more in the full article here.

MacDailyNews Take: Not only is Peter Misek a prognosticator, predicting “lackluster” sales of Apple’s iPhone 5C before it was even unveiled, but he’s also the genius who once said:

“Microsoft, with Windows Mobile/ActiveSync, Nokia with Intellisync, and Motorola with Good Technology have all fared poorly in the enterprise. We have no reason to expect otherwise from Apple.” – Peter Misek, explaining why Apple’s newly-released, paradigm-shifting iPhone OS SDK – which allowed third-party developers to create native applications for iPhone, ushering in the App revolution and the whole new App economy – would be “neutral” to BlackBerry-maker Research in Motion (currently gasping for air and up for sale), March 07, 2008

18 Comments

  1. Don’t you wish that you could just manipulate your interest rate at the bank simply by announcing what your expectations were and how the bank/lender’s status disappointed/pleased you?

  2. This is all great, really great. I don’t need to do any work at all and Apple gets to buy back their shares at bargain basement prices. Kudos to TC for pulling this off. I’m very, very impressed. It really takes balls. I only wish I had more money right now. I’d be pouring it into the hands of the morons who are selling right now.

  3. Yep, Anal-ysts. We hate them, we vilify them, we (at MDN) ignore and/or laugh at them.

    And yet . . . they move AAPL valuation any way they seem fit. UP if it suits them; DOWN if it suits them. Small investors have absolutely no say in the direction, either way.

    Analysts/institutional investors/hedge fund managers, et al. ONLY THEY matter. Love them, hate them, ignore them . . . only their opinions matter.

    Would that it were not so.

  4. Misek is a complete a$$hole!

    He also lowered it from $420 to $405 in late June.
    He raised his PT back on August 1, 2013: from $405 to $450.
    Now he’s lowering it to $425 from $450

    Will this a$$hole make up his mind and stop manipulating the stock? Oh yeah, that’s right, that’s EXACTLY what he wants to do.

    Who the hell would want to listen to this idiot after being so wishy-washy. Plus he’s lowering it the PT after they just released TWO new products?

    MORON.

  5. The situation is great for Apple and a bit rough ride for AAPL investors. This quarter’s earning are going to be very impressive – the iPhone 5S is going to be a phenomenal success, the iPhone 5C will reap high margins (and possibly unexpected popularity within some countries and demographics), and at least one Mac / iPad / Apple TV product will be refreshed by the end of the year and dominate holiday sales. Yet Wall Street is too thick to see it coming – so the stock price is going stagnate and go down slightly for some time, until Apple announces its earning in January, or earlier if Wall Street figures out what’s going on sooner.

    I see no reason to sell AAPL now, but no compelling reason to buy right now either: Sure, you can start collecting dividends sooner if you buy now, but odds are the stock value will go down in the near future before it goes up. And you could sell now to minimize losses during this rough period, but there’s no way to predict when exactly the rough period will be over. I think the “perfect” moment to buy more AAPL will be whenever investing news for AAPL starts looking generally positive, which I think could happen as early as when initial sales numbers for iPhone 5S are released by Apple.

    Why should you listen to my investment advice? No particular reason, I’m just some guy on the web. But I feel somehow way more qualified then these idiot analysts.

    1. This is the perfect moment for Carl ICahn stepping in to support AAPL from parasites-analysts. Carl should use a magic wands shovel off all the bad journalists and analysts away.

  6. I once knew a financial adviser. He always comment he couldn’t believe how easy it was to make shit load of money for doing almost nothing.

    I think his name wos working for Jeffries.

  7. Lowered earnings per share when Apple is buying Billions of dollars of stock back. What a moron!! He must have his bet on the wrong side of the line and needs to minimize his losses.

  8. Is f… nut? He is not a good adviser on following note!!!
    He maintains his Hold rating while lowering the price target to $425 from $450
    If his target is 425 to 450 and price is in excess of 470 then why hold? He should go short and ask his client to go short. I think he needs to check up.

  9. I receive a lot of bashing for being so bearish on Apple. Last October when the stock was at the highs, I wrote a blog post including some key comparison and gave a price target of $300 by 2015. Now, you can very well imagine what kind of responses I would have received. Anyhow, recently I wrote another post right after Icahn tweeted about his stake in Apple, and suggested that it was a sucker fueled by Icahn. Once again Apple bulls (emotional investors) called me silly names. I still can’t believe that bulls are not ready to give up and call it a bad trade. My Analysis and Stock forecast: http://www.projabber.com/2013/08/who-buys-rotten-apples-carl-icahn.html

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