Apple Target Cut to $425 from $450: Jefferies

Apple Inc.’s AAPL -0.77% price target was cut to $425 from $450 at Jefferies late Thursday. Analyst Peter Misek said they are cutting full-year 2014 estimates for earnings per share to $37.95 from $38.78 (versus consensus of $42.66) for two reasons.

Firstly, the new iPhone 5C is being priced similar to Apple’s prior-generation handsets rather than setting a new level, and secondly, checks indicate supply constraints due to poor yield rates on the fingerprint sensor.

“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 Misek.

Source: MarketWatch