Earlier this week, the Apple stock closed at an all time peak, but it appears that not everyone has such a positive outlook. An UBS analyst have downgraded its stock over concerns of its growth.
Apple stock downgraded by UBS since its growth faces pressure
UBS analyst David Vogt recently downgraded the Cupertino based giant’s stock from Buy to Neutral. Although, he also raised the price target from 180 US Dollars to 190 US Dollars. According to the analyst, the company was downgraded due to its “given persistent softness in developed markets and data that indicates growth is likely to remain under pressure.” The news also arrives as the iPhone maker gets closer to a whopping 3 trillion US Dollar market cap.
Furthermore, the move from UBS is partly due to Apple’s valuation. The company as well as other tech giants have raised their market caps by billions and have had their stocks prices rise to new highs. Vogt added that “While a premium is justified, expansion is unlikely given growth headwinds”. The announcement of the new Vision Pro also drove the stock higher last month, but this product isn’t arriving till next year.
So, the focus once again shifts to the brand’s most important product line, the iPhone. BUt UBS has raised concerns over long term growth for the iPhone as well. Vogt believes that the iPhone sold in some of the biggest markets like the US, China, and Europe have declined by over 7.5 percent year on year. However, there are others analysts that believe that the company is arriving at a massive sales cycle for the iPhone, with the upcoming iPhone 15 lineup.
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(Via)
