Apple: stock rots on broker downgrade
(CercleFinance.com) - On Thursday Apple shares closed down almost 5%, as Bank of America downgraded them to "neutral" (from "buy"), reducing its corresponding target price from 185 dollars to 160 dollars.
In a report, the broker justified its downgrade by a risk/reward profile that it considers "more balanced" at current levels.
Analysts interpret the slowdown in services activity and unpromising iPhone delivery times as signals that consumer demand is set to slow.
The outlook for Apple seems pretty rotten, with the trajectory potentially deteriorating further by the end of FY 2022/2023, the analyst continues, reducing earnings estimates accordingly.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a report, the broker justified its downgrade by a risk/reward profile that it considers "more balanced" at current levels.
Analysts interpret the slowdown in services activity and unpromising iPhone delivery times as signals that consumer demand is set to slow.
The outlook for Apple seems pretty rotten, with the trajectory potentially deteriorating further by the end of FY 2022/2023, the analyst continues, reducing earnings estimates accordingly.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.