Soft demand for Apple’s latest iPhone has prompted Barclays Plc analysts to downgrade the stock, as shares fell 3.6% recently, the largest one-day drop since September. The decline also saw a loss of over $107 billion in market value.
The analysts reduced the closing stock price target on Apple by $1 to $160, compared with the closing price of $185.64.
Barclays analysts said, “We expect reversion after a year when most quarters were missed and the stock outperformed. Our checks remain negative on volumes and mix for iPhone 15, and we see no features or upgrades that are likely to make the iPhone 16 more compelling.”
The company’s shares rose about 50% to a record last year, seeing the market value reach $3 trillion as investors bet the iPhone 15 would resist a slow economy.
Doubts have arisen though on whether the stock will be able to repeat the gains, considering competition and a Chinese government have cracked down on foreign made devices.
This new underweight means the company has five sell or equivalent ratings, comparing to 34 buys and 14 holds.
The recommendation consensus stands at 4.08/5, the lowest since October 2020. An average analyst price target is a return of 7.5% over the next year.
