Site icon MacDailyNews

Wells Fargo downgrades Apple on profit margin concerns

“After a subpar 2013, Apple (AAPL) kicked off the new year on a bearish note on Thursday after Wells Fargo downgraded the consumer electronics giant on concerns about future margin expansion,” Matt Egan reports for FOXBusiness.

“Shares of Apple retreated on the cautious analyst research, falling more than 1% in early action,” Egan reports. “Wells Fargo cut its rating on the iPad and Mac maker to ‘market perform’ from ‘outperform,’ although the bank maintained its conservative valuation range on the stock.”

“Wells Fargo analyst Maynard Um noted that Apple’s gross margins have dropped by an average of 2.25 percentage points following the launch of new form factor iPhones,” Egan reports. “Wells Fargo kept its $536 to $581 valuation range on Apple and noted holiday sales appeared to be ‘strong.'”

Read more in the full article here.

[Thanks to MacDailyNews Reader “silverhawk1” for the heads up.]

Exit mobile version