Apple (NASDAQ: AAPL) experiences another setback as Piper Sandler, the investment bank, downgrades the tech giant’s stock from overweight/buy to neutral, marking the second downgrade this week.
Apple (AAPL) stock has faced its second downgrade from a Wall Street analyst this week. On Thursday, the investment bank Piper Sandler lowered its rating on the iPhone maker, shifting from overweight (or buy) to neutral.
Harsh Kumar, an analyst at Piper Sandler, has taken a cautious stance as he downgraded six stocks, shifting their ratings from overweight to neutral. Among the affected stocks are Apple (NASDAQ: AAPL) and semiconductor companies Akoustis Technologies (NASDAQ: AKTS), MACOM Technology Solutions (NASDAQ: MTSI), Microchip Technology (NASDAQ: MCHP), Qorvo (NASDAQ: QRVO), and Skyworks Solutions (NASDAQ: SWKS).
In a recent note to clients, Kumar said,
“We are starting 2024 with a cautious stance. We believe that first-half 2024 will be challenging for the analog market, handset and consumer end markets.”
Harsh Kumar has altered his perspective on Apple stock because of concerns about sluggish smartphone sales and macroeconomic challenges in the initial six months of the year.
Harsh also has adjusted his outlook on Apple, reducing the price target from $220 to $205. This comes alongside a 1.3% decline in Apple’s stock, which closed at $181.91 on Thursday.
This downgrade comes a day after Barclays analyst Tim Long downgraded Apple to underweight (sell) from equal weight (neutral). He pointed out the absence of favorable catalysts on the horizon for the consumer electronics giant, coupled with “underwhelming” iPhone sales and poor performance in other hardware categories. Moreover, he also expects a slowdown in Apple’s services revenue growth.
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