Jefferies, a financial analysis firm, has lowered its rating for Apple from “hold” to “underperform” due to concerns about the company’s financial projections for the June quarter. Apple expects to spend $900 million on costs related to current tariffs. However, Jefferies believes this estimate is too optimistic because it assumes tariffs on Chinese imports will stay at 20% and that no tariffs will be applied to imports from India and Vietnam. The analysts think these assumptions may not hold true in the future, especially if new, non-negotiable tariffs are introduced for specific industries.
Despite the downgrade, Jefferies slightly increased Apple’s target price from $167.88 to $170.62. On Friday, Apple’s stock price fell 3.74%, closing at $205.35.
