Apple Stock Stuck In Neutral? Analyst Says Sales Inch Up, But Growth Concerns Linger
Portfolio Pulse from Shanthi Rexaline
KeyBanc analyst Brandon Nispel maintains a 'Sector Weight' rating on Apple, Inc. (NASDAQ:AAPL), citing muted near-term prospects despite a 6% month-over-month increase in indexed Apple hardware spending in February. This increase is attributed to the launch of the Vision Pro and a weaker February in the previous year. However, year-to-date hardware spending is down 20% compared to last year. KeyBanc maintains a lower hardware revenue forecast due to weak upgrade rates, Chinese competition, and App Store regulations. iPhone 15 sales are meeting expectations, but overall iPhone demand is softening, with February sales down 8% month-over-month and 12% year-over-year. Apple's stock is down 10.7% this year.
March 18, 2024 | 6:55 am
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KeyBanc maintains a 'Sector Weight' rating on Apple, Inc. (NASDAQ:AAPL), with concerns over muted near-term prospects despite some positive sales data. The firm points to weak upgrade rates, Chinese competition, and App Store regulations as factors likely to limit stock price movement.
Despite a positive month-over-month increase in hardware spending, the overall year-to-date decline and concerns over upgrade rates, competition, and regulatory issues suggest a neutral short-term impact on Apple's stock price. The analyst's rating and the mixed sales data indicate uncertainty in growth prospects, which is likely to keep the stock movement limited.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100