Apple: New Street Research cuts target price to 155 dollars
(CercleFinance.com) - Analysts at New Street Research have cut their target price for the Apple stock to 155 dollars, expecting that iPhone demand will "hit a wall" again in 2020.
After the "air-pocket" in demand that the iPhone experienced in 2019, smartphone demand is more generally in a phase of multi-year decline, like PCs were in 2012-2017, the independent research house writes in a note.
Given "weak" iPhone demand, which prompts unprecedented price cuts and promotions, Apple is likely entering one of the weakest cycles of its history, with dried-up demand, New Street Research warns.
Consensus expectations are missing the upcoming weak cycle, it points out, and the demand model estimates suggest 2020 that will play out even worse.
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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.
After the "air-pocket" in demand that the iPhone experienced in 2019, smartphone demand is more generally in a phase of multi-year decline, like PCs were in 2012-2017, the independent research house writes in a note.
Given "weak" iPhone demand, which prompts unprecedented price cuts and promotions, Apple is likely entering one of the weakest cycles of its history, with dried-up demand, New Street Research warns.
Consensus expectations are missing the upcoming weak cycle, it points out, and the demand model estimates suggest 2020 that will play out even worse.
Copyright (c) 2019 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.