On Monday, Jefferies analyst Edison Lee downgraded Apple from hold to a sell-equivalent rating and lowered the price target from $285.56 to $263.66, indicating a potential downside of nearly 16% from the stock's recent close.
Lee's downgrade was based on supply chain checks that revealed the cancellation of Apple's '20th anniversary all-glass iPhone,' which was expected to launch in September 2027. He estimated that these all-glass models would have an average selling price of $2,060, which he described as a significant setback for Apple's strategy to introduce higher-priced iPhones amid rising memory costs.
However, Apple has not officially announced any all-glass model, leading some analysts, including Jeff Marks from the CNBC Investing Club, to express skepticism about the reliability of supply chain data. Marks emphasized that frequent changes in Jefferies' ratings could mislead retail investors, who may not have the expertise to navigate such volatility.
Despite the downgrade, Apple has performed well, with a 30% increase in stock price over the past year. Looking ahead, Apple is set to launch the iPhone 18 series and a foldable iPhone, which could drive demand. Additionally, changes in leadership and potential price hikes due to memory shortages are on the horizon.
Overall, analysts maintain a positive outlook on Apple, with a hold-equivalent rating and a price target of $340, suggesting confidence in the company's future growth and product offerings