Shares of Apple (AAPL) - Get Report sank Friday as analysts at Deutsche Bank slashed their price target on the tech giant, citing "considerable uncertainty" stemming from the impact of the deadly coronavirus.
Apple's stock price fell 3.21% to $283.51 a share in premarket trading, with Deutsche Bank analysts Jeriel Ong and Ross Seymore cutting their price target to $295 a share, down from $302.74 previously.
The Deutsche Bank analysts have reduced their estimates for Apple's earnings and revenue for the current quarter, citing recent disclosures by Foxconn, which assembles iPhones for Apple at plants in China, of coronavirus-driven production problems.
Foxconn reportedly has been struggling with a shortage of workers as it pushes to get production back to normal at its China plants, having extended the traditional Lunar New Year break in January amid efforts to stop the spread of Covid-19.
Deutsche Bank has reduced its estimates for the quarter ending in March, lowering revenue to $60.4 billion and earnings to $2.69 a share.
While the falloff in Apple's stock price from January and February - having dropped from $324.95 a share on Feb. 14 - make the tech giant a more attractive buy, the price of its shares are still trading "at a premium to the S&P 500," the Deutsche Bank analysts wrote.
As a result, Deutsche Bank maintained its hold rating on Apple's stock, with the analysts noting there "aren't reasons to rerate the stock much higher vs. the market, thus we remain on the sidelines."
"We feel incrementally more comfortable in taking a stab at how March could shape up given the incremental, production-related disclosures by Foxconn," the Deutsche Bank analysts wrote.