KEY TO REMEMBER
- Apple shares fell on Tuesday after Jefferies lowered the stock’s rating from “underperform” to “hold” on Monday.
- Jefferies noted that declining iPhone sales and weak demand for its artificial intelligence (AI) features in newer models would lead the tech giant to understate its quarterly revenue forecast.
- JPMorgan analysts maintained an overweight on Apple on Tuesday, but lowered their price target from $265 to $260, citing wariness in the company’s prospects.
Shares of Apple (AAPL) fell Tuesday after Jefferies lowered the stock’s rating from “underperform” to “hold” on Monday amid slowing iPhone sales and weak demand for its features of artificial intelligence (AI) in new models are expected to drive the tech giant to below quarterly revenue forecasts.
Jefferies also lowered its price target on Apple from $211.84 per share to $200.75.
Apple is expected to release its first quarter 2025 numbers on Thursday, January 30.
“We are reducing our forecast due to weak iPhone sales and the general environment. (consumer electronics) and our reduced outlook for iPhone 17/18 due to slowing AI adoption and commercialization,” Jefferies analysts wrote, adding that the brokerage expects that Apple fails to meet its first quarter 2025 revenue guidance of 5% growth. They also said the tech company’s guidance for the March quarter “could also disappoint.” “.
JPMorgan is still overweight but lowers its price target
Separately, analysts at JPMorgan (JPM) maintained an overweight on Apple on Tuesday, but lowered their price target to $260 from $265, citing wariness in the company’s prospects.
Among their concerns: the strong dollar at a time of limited appetite for Apple products, and “unit sales stagnation” given current AI capabilities, as well as weak Chinese demand. They said Apple will continue to lose market share in China because it is already “past the peak of its product cycle” and the company’s high-end phones do not benefit from local government subsidies for low to mid level phones.
Apple shares fell sharply last Thursday as data from research firm Canalys showed the tech giant lost its coveted position as China’s largest smartphone seller last year. Apple’s Chinese iPhones are not equipped with its recently launched AI features.
The stock is down about 3.5% Tuesday at around $222.40 and is down nearly 12% in 2025.
