Poor iPhone 5 demand sends earning targets down
Nomura Equity Research announced Tuesday that it was cutting earnings and revenue targets for Apple Inc. The research firm slashed its expectations for earnings from Apple due to shrinking iPhone 5 sales. Analyst Stuart Jeffrey said the reduced expectations were "to reflect signs of weaker-than-expected iPhone 5 sales."
Jeffrey cut the target price for Apple to $530 per share from $660 per share. He said, "We are more cautious than sell-side forecasts for revenue and gross margin, mostly driven by our expectation that iPhone gross margins and average selling prices are unsustainably high." The analyst is keeping a neutral rating on Apple.
The research firm also increased its Q1 2013 profit target on Apple to $12.84 per share from the previous $12.78 per share. However, the research firm cut Q2 2013 estimates down to $11.25 per share from $11.96 per share previously.