Apple Inc (NASDAQ:AAPL) stock has plunged about 4.6% after Bank of America analysts downgraded the tech company from ‘Buy’ to ‘Neutral,’ citing weakening consumer demand and the underwhelming response to the new iPhone 14.
Analysts also slashed their price target for the stock from US$185 per share to US$160. Apple shares were trading at about US$143 on Thursday morning.
In a note to clients, Bank of America analysts wrote that they believed Apple’s strong outperformance was at risk due to weaker consumer demand and a slowdown in services.
READ: Apple U-turns on iPhone 14 production after lower-than-expected demand
“Although Apple’s long-term prospects remain favorable, we see incremental risk to earnings and valuation over the near term,” they wrote.
This comes a day after reports that the company would be pulling back on its plans to increase production of the iPhone 14 due to lower-than-expected demand.
According to Bloomberg, Apple told suppliers to slash production by as much as 6 million units in the second half of 2022.
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