Jefferies Downgrades Apple Stock Amid Mixed Market Reaction
Jefferies has downgraded Apple's stock rating and lowered its price target, despite the market reacting calmly and Apple's stock gaining over 20 percent in the last quarter.
Jefferies, an investment bank, has downgraded Apple from 'Hold' to 'Underperform' and reduced its price target for Apple stock to $205.16. The firm criticizes the upgrade cycle and prospects for the upcoming iPhone 18 Fold, stating that high expectations for future iPhone generations are unrealistic. Jefferies believes that strong sales of the current iPhone 17 are due to pricing strategies rather than innovations. However, the market reacted calmly to Jefferies' bleak assessment, with Apple's stock even gaining slightly.
In contrast, other analyst firms like Morgan Stanley remain optimistic about Apple's growth trajectory. Experts generally expect moderate growth in future iPhone sales, with iPhone 17 shipments rising by around +3.5% compared to the previous generation and iOS device shipments growing by +3.9% in 2025. This growth is supported by premiumization trends and steady demand, especially for the base iPhone 17 model whose production Apple has recently increased significantly. Despite this, some analysts remain cautious or skeptical about Apple's stock outlook, citing incremental product improvements, delayed AI innovations, increased costs, and geopolitical risks.
Jefferies' downgrade of Apple's stock rating and lowered price target highlights differing opinions among analysts about the tech giant's future prospects. While some experts remain optimistic about iPhone sales, others express concerns about Apple's stock outlook, leaving investors to navigate varying assessments as they make crucial decisions about their investments.
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