Analyst reiterates Underweight rating, forecasting a 26% decline from current levels due to slowing iPhone growth and valuation concerns.
KeyBanc Capital Markets analyst Brandon Nispel maintained an Underweight rating on Apple (AAPL) stock, setting a $250 price target. This implies a potential 26% drop from current levels ahead of the company’s earnings report this Thursday.
Apple stock has risen 24% year-to-date, outperforming the S&P 500’s 8% gain. The tech giant has been viewed as a safe-haven play amid volatility in semiconductor stocks and AI-driven debt expansion by peers like Oracle (ORCL) and Meta (META).
Nispel argued that Apple’s shift toward pricing-led growth over volume expansion, coupled with a 34x P/E ratio, makes the stock overvalued. He warned that slowing iPhone unit growth could drag down user and services growth.