Breaking News

Apple stock downgraded yet again, rating slashed from ‘overweight’ to ‘neutral’

Apple received its second straight rating downgrade of the year on Thursday, with financial services firm Piper Sandler downgrading the rating on the tech giant’s stock to ‘neutral’ from ‘overweight.’

Apple Inc. logo

The decision, said Piper Sandler in a note to its clients, was due to worries regarding ‘tepid’ demand for Apple’s products, including the iPhone. The brokerage also revised its price target on Apple’s stock to $205 from $220.

Wrap up the year gone by & gear up for 2024 with HT! Click here

“We are concerned about handset inventories entering into 1H24 and also feel that growth rates have peaked for unit sales…deteriorating macro environment in China could also weigh on the handset business,” Harsh Kumar, MD and senior research analyst, Piper Sandler, explained in the note.

Kumar further stated that the Tim Cook-led company is also likely to face further challenges due to an ongoing patent dispute involving the new Apple Watches, and because of a strong US dollar.

On Tuesday, it was Barclays which cut its rating for the Cupertino, California-based firm, going from ‘neutral’ to ‘underweight.’

On Thursday, meanwhile, Apple’s shares dropped 1.7% to $181.20, an eight-week low. If the losses were to hold, the company would have lost $47.4 billion of its value for the day.

(With Reuters inputs)

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it’s all here, just a click away! –Login Now!

Leave a Reply

Your email address will not be published. Required fields are marked *