No Holiday Cheer For Apple? Analyst Details These 2 Factors That Can Pressure Cupertino's Hardware Revenue In Q1
Portfolio Pulse from Shanthi Rexaline
KeyBanc Capital Markets analyst Brandon Nispel maintains a Sector Weight rating on Apple Inc. (AAPL), expressing concerns over Apple's hardware sales growth in its fiscal first quarter of 2024. Despite a 6% month-over-month drop in indexed spending in October, which is better than the three-year average, Nispel believes that lower upgrade rates and softer customer demand will pressure hardware revenues. KeyBanc maintains its below-consensus estimates and a fair value of $182 for Apple stock, which is currently trading at overbought levels with a relative strength index around 70.
November 21, 2023 | 6:59 am
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KeyBanc analyst maintains Sector Weight rating on Apple, citing concerns over hardware revenue pressure in Q1 due to lower upgrade rates and softer demand. Fair value is set at $182, below the current price, with the stock in overbought territory.
The analyst's concerns about Apple's hardware revenue due to lower upgrade rates and softer demand suggest a negative outlook for the stock in the short term. The fair value estimate being below the current trading price and the overbought condition of the stock could lead to a downward pressure on the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100