In a note dated October 2, Deutsche Bank analyst Sherri Scribner downgraded shares of Apple Inc. AAPL from Buy to Hold and lowered the price target from $105 to $102.
To support her downgrade, Scribner commented, "We believe investor expectations for iPhone sales are currently high, making it more difficult for Apple to outperform expectations. In addition, the company has now announced all of its anticipated new products, creating limited catalysts for the shares through year-end."
In terms of new iPhone sales, Scribner explained there is a good deal of optimism floating around the investment world due to an expected refresh cycle from the large 4S customer base, as well new carrier relationships in China. She believes Apple will have a hard time living up to these expectations, which she believes are above her model's estimates.
As far as catalyst are concerned, Scribner said it is unlikely we will see any new product releases matching the scale of the September unveiling of Apple Pay, Apple Watch, and the iPhone 6 and 6 Plus for the rest of 2014.
Shares of Apple are trading around half of a percent lower in Friday's pre-market session.
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