Barclays Removes Apple As A 'Top Pick'; Warns Global Smartphone Growth Recovery Could Be Pushed Out

Apple Inc. AAPL shareholders have gotten a lot of conflicting news about the market reception for the iPhone 7 and its potential impact on Apple stock. The latest news from Barclays paints a somewhat bleak picture.

Barclays analyst Mark Moskowitz has removed Apple’s Top Pick designation in the face of a softening global smartphone market. Barclays is now calling for global smartphone revenue and unit growth of -2.9 percent and +2.6 percent in 2016.

“Despite new products from both Samsung and Apple, our research is not indicating any major improvement in smartphone units beyond initial channel fill for the respective product launches,” Moskowitz explains.

Related Link: Bank Of America Highlights 4 Flaws In Disappointing Apple iPhone 7 Data

Barclays is concerned that the iPhone 7 will see declining sales demand in coming months similar to the decline the iPhone 6S experienced last year.

The good news for Apple investors is that, despite cuts to iPhone estimates, Barclays has raised its expectations for Apple’s Mac and iPad segments.

For now, Moskowitz expects more near-term choppiness for Apple shares. He expects big things from the iPhone 8 next year, but sees little fundamental justification for near-term outperformance.

Barclays remains Overweight on Apple’s stock. However, the firm has lowered its price target to only $114, implying very little upside.