Apple Stock Fluctuates After KeyBanc Downgrades Amid Soft US Sales Forecast
Apple's stock experienced volatility following a KeyBanc downgrade citing anticipated sluggish U.S. sales growth through early 2025.
Key Highlights
- Apple's shares showed mixed movement after KeyBanc lowered its rating, forecasting a slowdown in U.S. sales momentum.
- KeyBanc expects weak Apple sales at least until Q1 of fiscal year 2024.
- The firm also indicated that Apple's revenue and profit projections may be optimistic, limiting potential positive surprises in upcoming earnings.
Apple's stock oscillated between gains and losses during Wednesday's trading session after KeyBanc downgraded its rating on Apple (AAPL) from "overweight" to "sector weight," reflecting concerns over subdued sales growth in the U.S. market.
According to KeyBanc analyst Brandon Nispel, consumer spending weakness could cause U.S. sales to remain challenged through the first quarter of fiscal 2024. Although a consumer shift towards higher-end iPhone models might boost average selling prices, it likely won't significantly increase total unit sales.
Nispel further noted that Apple's elevated revenue and earnings estimates leave limited room for upside surprises when the company releases its next earnings report.
This downgrade aligns with recent moves by other analysts; for instance, Rosenblatt Securities downgraded Apple to "neutral" in early September, citing slower iPhone sales and uncertainty around new product categories.
Following the downgrade, Apple shares initially dipped but recovered to a 0.3% gain by midday Eastern Daylight Time on Wednesday. Despite a 12% drop from its July peak, Apple's stock remains up more than 38% year-to-date.
If you have news tips for our reporters, please contact us at tips@investopedia.com.
Discover engaging topics and analytical content in Company News as of 09-10-2023. The article titled " Apple Stock Fluctuates After KeyBanc Downgrades Amid Soft US Sales Forecast " provides new insights and practical guidance in the Company News field. Each topic is meticulously analyzed to deliver actionable information to readers.
The topic " Apple Stock Fluctuates After KeyBanc Downgrades Amid Soft US Sales Forecast " helps you make smarter decisions within the Company News category. All topics on our website are unique and offer valuable content for our audience.