Bank of America downgrades the Apple stock from “Buy” to “Neutral”

One of the Bank of America’s analysts has downgraded the Apple stock from “Buy” to “Neutral”.

The analyst explains his decision by the fact that the company’s great performance is at risk again. Also, he outlines that the Apple’s “significant growth since the beginning of the year” is caused by its so-called “safe haven” status as a reliable option for investment.

According to the analyst’s announcement, there are certain risks, indicating that the company won’t be able to show the same great results and hold the bar so high next year, because analysts await a negative revaluation of the company’s stock driven by weaker demand than earlier. It’s important to note that demand for services is already getting lower, and demand for products is expected to follow.

The price target is decreased by $25 (from $185 to $160 per share) in order to reflect the lowered estimates. The analyst also take attention to the fact that new forecasts for the company’s revenues and earnings per share (EPS) in 2023 are “significantly lower than consensus”, which is about the risks to iPhone и iPad sales, as well as about a slowdown in services and other products’ growth.

“Despite the Apple stock’s quite favorable position for a long-term investment, we see the risks for the company’s earnings in a short-term prospect,” – concluded the analyst in the announcement.