Apple Suffers Third Downgrade In January Amidst Anticipated iPhone Sales Rise

Investment analyst firm Redburn Atlantic has added its name to the list of firms downgrading Apple Inc. AAPL. This marks the third downgrade for the tech giant this month, following similar actions by Barclays and Piper Sandler.

What Happened: James Cordwell, an analyst at Redburn Atlantic, decreased his rating for Apple from "buy" to "neutral," maintaining his $200 price target, reported AppleInsider, citing Seeking Alpha.

Despite forecasting a 2024 rise in iPhone sales, Cordwell cautioned about a potentially lackluster March quarter.

Previously, Barclays predicted that the iPhone 16 would have no compelling feature, while Piper Sandler downgraded the tech giant over fears of falling demand.

See Also: How To Buy Apple (AAPL) Stock

Cordwell’s analysis suggests that Apple’s growth potential may have reached its zenith, with “little room for upside” in the future. He further voiced concerns over escalating regulatory pressures, particularly from the EU, which could negatively affect App Store earnings and Apple’s overall profitability.

It’s noteworthy that, for the first time, Apple’s price-to-earnings ratio has surpassed that of Nike’s. According to Cordwell, this signifies that Apple’s valuation may have peaked, with no more room for expansion.

Why It Matters: Last year, Apple’s iPhone 15 led a recovery in global smartphone sales, ending a 27-month decline. 

However, it was previously reported that a shift in Apple’s product focus is expected in 2024, with products like the Vision Pro, AirPods, and its flagship smartwatches poised to take center stage. 

The iPhone 16 lineup is also set for an upgrade, but significant changes aren’t expected.

Apple Image Via Shutterstock

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