Jefferies advised traders to dump Apple inventory, warning of a doubtlessly weak income quantity from the know-how large. Analyst Edison Lee downgraded shares to underperform from maintain. Lee additionally reduce his worth goal to $200.75 from $211.84, now reflecting the potential for shares to drop 12.7%. Lee stated Apple ought to miss the income development forecast of 5% for the primary quarter of the 2025 fiscal yr when it reviews later this month. He stated the corporate will seemingly information second-quarter income to a proportion within the low single digits, which might additionally are available in decrease than consensus forecasts. Past financials, Lee referred to as the outlook for synthetic intelligence “subdued” at Apple. That may be a priority for market contributors, whose consideration has largely been centered on the potential of the know-how for greater than a yr. Along with chilled AI curiosity, he stated poor iPhone gross sales can be a motive for the weak income. To make certain, Lee’s downgrade is out of line with Wall Road. Nineteen analysts say to purchase Apple and 6 say it is a maintain, in response to Tipranks.com. Simply three different analysts advocate promoting the shares. The inventory has dropped greater than 8% in 2024, taking a bit out of final yr’s 30% surge. Apple reviews earnings on Jan. 30.
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