Tech giant Apple (NASDAQ:AAPL) dipped in pre-market trading after top-rated Barclays analyst Tim Long downgraded the stock from Hold to Sell and lowered the price target to $160 from $161. The analyst’s current price target implies a downside potential of 16.9%.
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The analyst cited the “lackluster” performance of Apple’s iPhone 15 as the reason for the downgrade. Long also pointed out that Apple’s other hardware categories will likely exhibit weak growth and does not see its Services business growing more than 10%. The analyst expects “reversion” in 2024 after the stock outperformed in a year with missed quarters. Over the past year, AAPL stock has soared by more than 50%.
Long’s channel checks indicated that there continued to be persistent weakness in iPhone volumes and mix, including in Macs, iPads, and wearables. As a result, the analyst also lowered his AAPL estimates.
Is Apple Stock a Buy or Sell?
Analysts remain cautiously optimistic about AAPL stock with a Moderate Buy consensus rating based on 23 Buys, seven Holds, and one Sell. The average AAPL price target of $203.04 implies an upside potential of 5.5% at current levels.
