2024 starts with Apple Barclays downgrade2024 starts with Apple Barclays downgrade

Apple Barclays changed their outlook on the stock from neutral to bearish, classifying it as “underweight.” They also reduced their projected pricing for the next year by $1 to $160.

Tuesday saw a 3% decline in Apple’s stock as a result of Barclays’ decision to downgrade the company’s rating, citing concerns about decreased demand for Apple products such as the iPhone and Mac throughout 2024.

As a result of the fact that Barclays is the second brokerage to provide a “sell” rating on the company, the number of negative recommendations for the stock has reached its highest level in at least two years, as shown by the data provided by LSEG.

Apple has been seeing a dip in demand since the beginning of the year and has forecast Christmas sales that would fall short of Wall Street’s expectations. Furthermore, its performance in China has been a source of worry, particularly in light of the return of rivalry from local competitor Huawei.

Barclays informed their clients in a note that they assess the iPhone 15 to be unimpressive and expect the iPhone 16 to deliver a comparable level of performance. The authors cited deficiencies in China and subdued demand in more developed markets as elements that influenced their evaluation.

The brokerage also expressed worry about the escalating dangers for Apple’s services segment, which has come under examination in nations such as the United States owing to apprehensions about its app store policy.

The business has grown faster than Apple’s hardware section every year for the past few years and now makes up almost 25% of the company’s total income.

The drop in share value on Tuesday was predicted to deplete Apple’s market capitalization by $90 billion. The stock increased by about 50% in 2023, reaching an all-time high in mid-December as part of a larger boom in Big Tech equities.

Apple had been assigned a “sell” rating by Itau BBA exclusively prior to Tuesday. However, as of now, Barclays has downgraded the stock from “neutral” to “underweight” and decreased its 12-month price target by $1 to $160.

The stock of the iPhone manufacturer is recommended for purchase by the majority of analysts, with an average target price of $200. The ratio of the company’s market value to its expected profits for the next twelve months is around 28.7, which is much higher than the ratio of 19.8 that is average for the S&P 500.

LSEG data suggests that Barclays analyst Tim Long has been acclaim-worthy with a two-star rating with regard to the accuracy of his predictions surrounding Apple’s performance.

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