Apple: Jefferies downgrades to 'underperform'
(CercleFinance.com) - On Tuesday Jefferies downgraded Apple shares from 'hold' to 'underperform', with the target price unchanged at $200.
75 (cp: $230; pmt -2%).
In a research note, the analyst explains that he expects weaker-than-expected demand for Apple products to lead to a downward revision of market earnings forecasts.
The broker points out that iPhone sales were "particularly weak" in Q4, especially in China, a trend he sees continuing into the new year.
Against this backdrop, Jefferies expects Apple to miss its sales growth target of 5% for the first three months of the year, and that the group will target growth of between 0% and 5% for FY 2024/2025, which is below consensus.
The company, which is accordingly revising its estimates downwards, is also concerned about feedback from US consumers, who feel that AI-related functionalities on smartphones are currently of little relevance, and about the uncertainty surrounding Apple's planned timetable for the deployment of AI on its devices.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
75 (cp: $230; pmt -2%).
In a research note, the analyst explains that he expects weaker-than-expected demand for Apple products to lead to a downward revision of market earnings forecasts.
The broker points out that iPhone sales were "particularly weak" in Q4, especially in China, a trend he sees continuing into the new year.
Against this backdrop, Jefferies expects Apple to miss its sales growth target of 5% for the first three months of the year, and that the group will target growth of between 0% and 5% for FY 2024/2025, which is below consensus.
The company, which is accordingly revising its estimates downwards, is also concerned about feedback from US consumers, who feel that AI-related functionalities on smartphones are currently of little relevance, and about the uncertainty surrounding Apple's planned timetable for the deployment of AI on its devices.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.