Apple’s shares dropped over 2% after Jefferies downgraded its rating, citing overly ambitious expectations for the iPhone. Analyst Edison Lee projected only a 2.5% sales increase for the iPhone 16, leading to a price target adjustment to $205.
Apple’s stock (NASDAQ:AAPL) fell over 2% on Monday after Jefferies downgraded its recommendation, citing overly high expectations for the iPhone. Analyst Edison Lee noted that while Apple maintains a competitive edge through its integrated hardware and software, allowing for customized AI services, smartphones need further development to effectively utilize AI, which may materialize by 2026/27. Lee described expectations for the iPhone 16 and 17 as premature, predicting only a modest 2.5% sales growth for the iPhone 16 instead of the previously anticipated 5-10%. Following this, Jefferies lowered its recommendation from “Buy” to “Hold” with a new price target set at $205. Models show a potential decline of 17% with a target of $182.
Apple Inc. has consistently been a major player in the technology sector, particularly known for its iPhone product line. However, market conditions can lead to fluctuating stock performance. Analysts’ expectations play a significant role in influencing investor sentiment and stock prices. Recently, Jefferies, a leading financial services company, has scrutinized Apple’s growth potential amidst evolving technology trends, particularly in artificial intelligence (AI). Understanding iPhone sales dynamics and how they interact with emerging technologies is crucial for assessing Apple’s market position.
The downgrade from Jefferies suggests that Apple may face challenges in meeting high market expectations for future iPhone models. The stock price impact reflects a cautious outlook among investors, highlighting the need for technological advancements to sustain sales growth. Apple remains a long-term leader in the tech industry but must adapt to changing market demands to maintain its growth trajectory.
Original Source: fr.investing.com
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