Analyst Says Apple’s (AAPL) Valuation Reflects “Overly Bullish” iPhone Outlook
Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks Investors Are Watching Closely. On October 3, Jefferies downgraded the stock to “Underperform” from Hold stating that expectations are too high for a foldable iPhone 18 for Apple. It also lowered its price target to $205.16 from $205.82.
Analyst Edison Lee stated that the stock’s current valuation prices in an “overly bullish iPhone outlook.”
“Better demand for iPhone 17, partly due to a price cut on the base model, is already in the price. That has led to excessive expectations on 18 Fold, and the replacement cycle.”
Lee further stated that he is unclear how big of a market there would be for a phone that costs around $2,000. A price-driven replacement cycle is unlikely to be sustainable, particularly one without new features. This could in turn result in margin pressure.
Photo by Alexandr Bormotin on Unsplash
The firm noted how the new iPhone Air, the thinnest iPhone yet, isn’t resonating well with customers which makes “any bullish view on foldable risky.”
Apple is a technology company known for its consumer electronics, software, and services.
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