AsianFin -- Apple’s stock rating was downgraded to a “Sell” on Tuesday by independent research firm MoffettNathanson. The firm lowered Apple's rating from "Neutral" and set a target price of $188, indicating a potential 22% drop in the stock price from its current level. Of the 60+ analysts on Wall Street covering Apple, only four have issued "Sell" or equivalent ratings.
Craig Moffett, a senior analyst at MoffettNathanson, stated in the downgrade report that while Apple remains a "truly great company," its stock has risen unreasonably due to a flood of negative news. This includes a federal judge ruling that Alphabet's $25 billion annual payment to Apple for its default search engine position on the iPhone is illegal, as well as the underperformance of Apple's Vision Pro headset. However, Moffett's primary concern is the tepid sales of the iPhone 16, despite the release of new artificial intelligence (AI) software updates. He believes the market is underestimating the risks associated with Apple stock, with its success in AI already fully priced in.
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