Jefferies analyst Peter Misek came down harsh on Apple (NASDAQ:AAPL) a day after the release of the company’s non-explosive earnings report for the holiday quarter, cutting his rating on the stock from Buy to Hold and chopping his price target by as much as $300.
“[The] slowdown in iPhone sales is real and material,” Misek wrote in a note to investors while bringing down his price target to $500. “While management was somewhat evasive on the call, it appears that demand in the second half of the quarter and into [first calendar quarter] was much weaker than management or we expected.”
Apple dropped almost 10 percent in after-hours trading as investors reacted to the slowed rate of revenue and earnings growth. Revenue rose 18 percent to $54.5 million from a year ago, but was below the consensus estimate of $55 million. Net earnings were $13.1 billion, or $13.81 a share, compared with $13.1 billion, or $13.87 a share, a year ago. The company did report record iPhone and iPad sales of 47.8 million and 22.9, respectively, but investors were not impressed.