“A Wall Street analyst is telling investors to sell shares of Apple Inc. one week ahead of the company’s expected unveiling of its latest iPhone, saying a downgrade is likely unless the company massively exceeds expectations at the event,” Steven Russolillo reports for The Wall Street Journal.
“‘We recommend taking profits in Apple,’ said Andy Hargreaves, an analyst at Pacific Crest Securities with an outperform rating and $100 price target on Apple. ‘Unless next week’s event details massive incremental profit opportunities, we are likely to downgrade Apple’s rating,'” Russolillo reports. “Shares slumped as much as 3.3% on Tuesday and fell below $100 for the first time since Aug. 20.”
“Still, Mr. Hargreaves caveats himself by saying investors should still hold some Apple shares through next week’s event,” Russolillo reports. “In conjunction with new iPhones, Apple is expected to show a wearable device that many have been calling an iWatch. It could also launch a new payment partnership, according to Mr. Hargreaves.”
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