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Jefferies downgrades Apple to Underperform on ‘weak’ iPhone sales
The Fly

Jefferies downgrades Apple to Underperform on ‘weak’ iPhone sales

Jefferies downgraded Apple (AAPL) to Underperform from Hold with a price target of $200.75, down from $211.84. The stock closed Friday up $1.72 to $229.98. The firm reduced forecasts to reflect “weak” iPhone sales and the general consumer electronics market. It cut its outlook for iPhone 17and 18 due to slower artificial intelligence uptake and commercialization. Jefferies expects Apple to miss its revenue growth guidance of 5% fiscal Q1 and guide “to only” low-single-digit revenue growth in Q2, below consensus. The company’s AI outlook is “subdued” and industry checks suggest Apple’s advanced packaging roadmap for the iPhone may face a delay, which is another negative sign, the analyst tells investors in a research note. Jefferies sees 13% downside in the shares and downgraded Apple to Undeform, its lowest stock rating.

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