Tech giant Apple (NASDAQ:AAPL) has been hit with its third downgrade this month. Redburn Atlantic analyst James Cordwell downgraded AAPL to a Hold from a Buy but kept a price target of $200 on the stock. The analyst’s price target implies an upside potential of 8% at current levels.
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Cordwell expects iPhone sales to grow this year. However, he sees limited upside in the coming years and remains concerned that a potentially underwhelming March quarter could affect investors’ confidence in the stock. In addition, the increasing regulatory risks aren’t helping matters, as the analyst believes these risks could impact the monetization of Apple’s ecosystem.
Furthermore, Cordwell thinks that Apple’s valuation is now “full,” as the company’s price-to-earnings multiple surpassed that of Nike (NYSE:NKE) for an extended period.
What is the Forecast for Apple Stock?
Overall, analysts remain cautiously optimistic about AAPL stock with a Moderate Buy consensus rating based on 22 Buys, nine Holds, and one Sell. Over the past year, AAPL stock has gained by more than 40%, and the average AAPL price target of $203.17 implies an upside potential of 9.74% at current levels.
