"With the downgrades, Apple's recommendation consensus a proxy for the ratio of buy, hold, and sell ratings has dropped to 3.9 out of 5, its lowest since early 2020, according to data compiled by Bloomberg. Just 55% of the analysts tracked by Bloomberg recommend buying the stock, which is extremely low among megacaps. Nvidia Corp., Microsoft Corp., and Amazon.com Inc., for instance, all have ratios above 90%."
"While we were initially excited about the prospects of Apple's role in the AI ecosystem and potential major upgrade cycle, it has become clear to us that neither of those are likely to come to fruition in the near-term, wrote analyst Gil Luria. The new products, including a thinner iPhone, left us uninspired, he wrote. Until they can redefine their current products or develop compelling new ones, we believe growth will remain constrained under the status quo."
Apple experienced two analyst downgrades that reduced its recommendation consensus to 3.9 out of 5, the lowest reading since early 2020. Only 55% of tracked analysts recommend buying the stock, a markedly lower rate than other megacaps such as Nvidia, Microsoft and Amazon. D.A. Davidson cited limited near-term AI prospects and uninspiring product updates, including a thinner iPhone, as reasons for cutting its rating. Phillip Securities reduced its rating after a rally from April lows and noted persistent product weakness and China market challenges absent significant AI innovation. Shares are down 9% year-to-date but have rebounded over 30% from April lows.
Read at www.mercurynews.com
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