Apple Inc. lost more than $107 billion in market value in the wake of a meltdown in its share price amidst soft demand for its latest iPhone prompting analysts at Barclays Plc to downgrade the stock.
The company share price fell 3.6 percent on Tuesday, its biggest one-day percentage drop since September, Bloomberg reported.
Barclays analysts led by Tim Long cut their rating on Apple to underweight and price target by $1 to $160, compared with the stock’s Tuesday closing price of $185.64.
“We expect reversion after a year when most quarters were missed and the stock outperformed,” the analysts wrote in a note on Tuesday.
“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.”
Apple’s stock faces growing concerns
Apple’s shares rose around 50 percent to a record last year and saw its market value hit $3 trillion as investors bet that its flagship device will withstand a sluggish economy.
However, doubts have emerged whether the stock will be able to repeat such hefty gains given rising competition from the likes of Huawei Technologies Co. and a Chinese government crackdown on foreign-made devices.
The new underweight means Apple has five sell or equivalent ratings, according to data compiled by Bloomberg, in contrast to 34 buys and 14 holds.
The stock’s recommendation consensus – a proxy for its ratio of buy, hold, and sell ratings – stands at 4.08 out of five, its lowest since October 2020.
The average analyst price target suggests a return of just 7.5 percent over the next year.
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