Apple is due for a big pullback, according to MoffettNathanson. The investment firm downgraded the iPhone manufacturer to sell from neutral. Analyst Craig Moffett also lowered his target price for the stock to $188 from $202. The new forecast implies downside of 23%. Shares of Apple advanced 30% in 2024, but Moffett believes that this rally higher has been largely unjustified. AAPL 1Y mountain AAPL 1Y chart “Much has been made of the fact that Apple’s shares have moved steadily higher over the past few months in the absence of any real news. But that’s not actually correct,” he wrote. “In fact, there has been a great deal of Apple-relevant news. It’s just that all of it has been bad.” As evidence, Moffett pointed to the lukewarm reception of Apple’s iPhone 16 and Apple Intelligence. The analyst added that iPhone 16 sales have waned relative to the iPhone 15, despite Apple pushing Apple Intelligence as a focal point in recent advertisements. Moffett also pointed to intensifying regulatory pressures as yet another headwind for the stock. Meanwhile, China continues to present a growing challenge for Apple moving forward, especially as competitors such as Huawei erode the company’s market share in the country. President-elect Donald Trump’s proposed tariff plan could also impair Apple’s supply chain to an unknown degree, according to the analyst. “As great a company as Apple is, the outlook for Apple’s shares, given this challenging backdrop, is, unfortunately, decidedly unattractive,” Moffett added. “A valuation that was already rich got richer, even as the rationale for why it was rich has taken on water.” Despite Moffett’s bearish stance, most analysts are bullish on Apple. LSEG data shows that 34 of 49 covering the stock rate it as a buy. The average price target, however, implies a slight decline ahead.
