Even Apple Inc (NASDAQ:AAPL, ETR:APC) is not immune to scepticism.
On Friday, Jefferies cut its rating on the iPhone maker to “underperform”, warning that investors are getting carried away with how quickly consumers will trade up their handsets.
The stock shrugged off the initial negativity created by the note to post a 1% gain to $258.43.
Apple’s stock has rallied more than 20% since August, close to record highs, but is still only modestly ahead for the year compared with a 15% gain for the Nasdaq 100.
Much of the momentum has been driven by stronger demand for the iPhone 17 and excitement over a forthcoming foldable model.
Jefferies argues that enthusiasm has already been baked into the share price and questions whether there would be enough appetite for a $2,000 handset. The new price target of $205 suggests more than 20% downside from the latest close of $257.