(Bloomberg) — Apple Inc. got itself a new bear as expectations of soft demand for its latest iPhone prompted analysts at Barclays Plc to downgrade the stock.
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Barclays analysts led by Tim Long cut their rating on Apple to underweight and price target to $160 from $161, implying a 17% decline over the next year, based on its last close. The stock dropped 3.8% as 1:30 p.m. in New York, representing a loss of more than $75 billion in market capitalization.
“We expect reversion after a year when most quarters were missed and the stock outperformed,” the analysts wrote in a note on Tuesday. “Our checks remain negative on volumes and mix for iPhone 15, and we see no features or upgrades that are likely to make the iPhone 16 more compelling.”
Apple’s shares rose around 50% to a record last year and saw its market value hit $3 trillion as investors bet that its flagship device will withstand a sluggish economy. However, doubts have emerged whether the stock will be able to repeat such hefty gains given rising competition from the likes of Huawei Technologies Co. and a Chinese government crackdown on foreign-made devices.
Read More: Apple’s $1 Trillion Rally to Be Tough to Live Up To in 2024
The new underweight means Apple has five sell or equivalent ratings, according to data compiled by Bloomberg, in contrast to 34 buys and 14 holds. The stock’s recommendation consensus — a proxy for its ratio of buy, hold, and sell ratings — stands at 4.08 out of five, its lowest since October 2020. The average analyst price target suggests a return of just 3.6% over the next year, based on its most recent close.
–With assistance from Subrat Patnaik, Ryan Vlastelica and Dawn McCarty.
(Updates to market open, adds detail on recommendation consensus in last paragraph.)
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
