Shares of tech giant Apple, Inc. AAPL pulled back in premarket trading on Wednesday after an analyst at KeyBanc Capital Markets downgraded the stock, citing four factors.
Brandon Nispel from KeyBanc downgraded Apple stock from Overweight to Sector Weight and also removed the $200 price target the firm had on the stock.
Among the pushbacks underlined by the analyst were unattractive valuation, slackness in the U.S. market, international markets not getting enough traction, and the current estimates baking in optimistic expectations.
“In our view, user growth is still more important than unit growth, but we believe this could be a losing argument NT given lack of catalyst, which we believe results in a neutral risk/reward," Nispel said.
The broader market negativity, triggered by a spike in bond yields, may also weigh down on the stock, as investors may prefer the safety and high yield on bonds over equities.
In premarket trading, Apple fell 0.85% to $170.93, according to Benzinga Pro data.
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