Apple It fell further on Thursday and lost about $176 billion since the beginning of the year, with Piper Sandler becoming the second brokerage this week to downgrade the stock over concerns of weak demand for its products, including iPhone,
The company’s shares fell 1.7% to an eight-week low of $181.20 on Thursday. If the losses continue, Apple will lose $47.4 billion of its value that day.
“We are concerned about handset inventory entering 1H24 and also feel that the growth rate for unit sales has peaked.. “The deteriorating macro environment in China may also impact the handset business.”
The brokerage cut its rating on Apple stock to “neutral” from “overweight” and cut its price target by $15 to $205.
Apple has been struggling with lagging demand since early last year and has forecast holiday-quarter sales lower than Wall Street expected.
The company is battling weak demand in China due to stressed consumer spending in the country as well as the revival of local rival Huawei.
According to Kumar, Apple may face headwinds due to the ongoing patent dispute related to its new Apple Watches and the strong US dollar.
The brokerage’s comments match those of Barclays, which on Tuesday downgraded Apple stock to the equivalent rating of “sell.”
In addition to growth concerns in the iPhone business, Barclays also warned about risks to the company’s services business, which has come under scrutiny in countries including the United States over some App Store practices.
According to LSEG data, analysts on average give the iPhone maker a “buy” rating with an average price target of $200.
The company’s shares fell 1.7% to an eight-week low of $181.20 on Thursday. If the losses continue, Apple will lose $47.4 billion of its value that day.
“We are concerned about handset inventory entering 1H24 and also feel that the growth rate for unit sales has peaked.. “The deteriorating macro environment in China may also impact the handset business.”
The brokerage cut its rating on Apple stock to “neutral” from “overweight” and cut its price target by $15 to $205.
Apple has been struggling with lagging demand since early last year and has forecast holiday-quarter sales lower than Wall Street expected.
The company is battling weak demand in China due to stressed consumer spending in the country as well as the revival of local rival Huawei.
According to Kumar, Apple may face headwinds due to the ongoing patent dispute related to its new Apple Watches and the strong US dollar.
The brokerage’s comments match those of Barclays, which on Tuesday downgraded Apple stock to the equivalent rating of “sell.”
In addition to growth concerns in the iPhone business, Barclays also warned about risks to the company’s services business, which has come under scrutiny in countries including the United States over some App Store practices.
According to LSEG data, analysts on average give the iPhone maker a “buy” rating with an average price target of $200.
