In a report released yesterday, Edison Lee from Jefferies maintained a Sell rating on Apple (AAPL – Research Report), with a price target of $202.33.
Edison Lee has given his Sell rating due to a combination of factors surrounding Apple’s strategic challenges and market conditions. One key reason is the anticipated weak demand for the upcoming SE4 model, despite its upgrades like a full-size OLED display and Apple Intelligence features. The competition from other models and the single rear camera are expected to limit its appeal.
Furthermore, Lee highlights concerns about Apple’s AI initiatives, particularly the potential deal with Alibaba in China. While such a partnership might seem advantageous, it would not significantly differentiate Apple’s offerings in the market. The lack of access to app data in China poses a major hurdle for Apple Intelligence to provide personalized services. Additionally, the current smartphone hardware is deemed inadequate for running advanced AI models, which might impede Apple’s growth in AI-related endeavors.
Lee covers the Technology sector, focusing on stocks such as Apple, VNET Group, Inc. Sponsored ADR, and GDS Holdings. According to TipRanks, Lee has an average return of 34.3% and a 63.93% success rate on recommended stocks.
In another report released on February 4, Barclays also maintained a Sell rating on the stock with a $197.00 price target.