Citi is cutting its price target from $500 down to $400 this should kill any rally
Apple (Nasdaq: AAPL) received a downgrade from Barenberg earlier today, but that's not the only firm taking a more cautious stance on the globe's second-largest company today.
Citi is cutting its price target from $500 down to $400, while trimming other estimates as well. The firm maintains a Neutral rating on the stock.
Reduced demand to Apple suppliers stemming from weaker end-demand for the 9.7-inch iPad and iPhone 5 led to the new outlook. Citi said the drop reflects tablet market share loss.
Citi also noted a risk to the Street's iPhone sales estimates for fiscal second- and third-quarter 2013. The firm cut Q213 iPhone sales expectations from 35 million down to 34 million units, while keeping Q313 iPhone sales estimates at 25 million units. The Street is looking for iPhone sales of 37 million and 32 million in each of the quarters, respectively.
Finally, Citi cited "fieldwork" on noting reduced demand for the iPad.