Apple (AAPL) Could Miss Its Q1 Guidance, Report

Jefferies (JEF) this morning cut its price target on Hold-rated Apple (AAPL) shares to $420 from $500, citing a 25% chance of the iPhone-maker missing its Q1 guidance due to sales slowing the second half of the quarter following Samsung’s Galaxy S4 launch event in New York’s Times Square this Thursday.

In addition to cutting its price target, Jefferies also lowered its Q1 revenue estimate for Apple to $41 billion, the low end of the company’s guidance. The brokerage blamed its outlook on Apple’s suppliers, which according to the firm’s channel checks are experiencing “issues with the new iPhone casing colors, leading to launches being delayed from June to July-September.”

Among the most interesting pump and dump stock stories of fiscal 2012, Apple is certainly near the top of the list. After printing the tape starting Q1’12 around $400 per share, Apple’s stock catapulted above the $700 level for a 75% gain. However, since September’s all-time highs, Apple’s PPS has nosedived to as low as $419 per share.

With growth slowing in FY 2014, expect the ticker’s forward multiple to drop as company’s margins decline. At $437 per share, Apple is currently trading at a ttm P/E of 9.9, a forward P/E of 8.8, and a PEG ratio of 0.52.

h/t: theflyonthewall

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1 Comment on Apple (AAPL) Could Miss Its Q1 Guidance, Report

  1. Peter Misek is late for his down grade apple. And he always wrong about Apple he will upgrade or down grade after the fact. Now is the time to buy Apple.

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