Apple stock drops after UBS downgrade

UBS analyst David Vogt assumed coverage of Apple and downgraded Apple shares by lowering UBS’s rating to “neutral” from “buy.”

Apple stock drops after UBS downgrade - Apple logoEmily Bary for MarketWatch:

“[W]hile shares of Apple typically outperform the market in the months leading to an iPhone launch, subsequent to the launch, shares have historically underperformed the market,” Vogt wrote.

The stock is trading at 29 times his estimates for earnings per share over the next 12 months, and it trades at 1.5 standard deviations about its trailing one-year mean, he said. “We think Apple shares already reflect the growth from the ‘5G cycle,'” Vogt wrote.

Vogt raised his price target on Apple’s stock to $115 from $106 in conjunction with the downgrade.

MacDailyNews Take: David Who? Buying opportunity.

10 Comments

  1. Most of the tech stocks were down today, so I don’t think the downgrade had much to do with Apple’s share price drop. I doubt many Apple investors are following analysts with negative views of Apple or they’d be losing money. With Berkshire Hathaway on board with Apple, I’m not going to listen to an analyst who is downgrading Apple before the holiday season. At these current price levels, Apple remains a BUY, in my opinion. If the retail investors have slowed on chasing Tesla, then they might as well flip on over to Apple.

  2. IMHO downgrade is basically just a letter to their clients to rationalize why they want to trim Apple to buy some other speculatives, probably due to bad choices earlier this year.

    1. I’m sure there are some investment managers that do the shell game with “client’s” $$, but there are market cycles, that show logic, rhyme and reason. The VIX, sometimes called the “fear gauge” is one such marker of market cycles that has little to do with an investment manager trying to cover mistakes, but has been shown to provide predictive value to many market followers…based on market cycles.

      The Apple specific VIX (VXAPL) was helpful in signaling AAPL’s big drop a week+ ago and it remains elevated…so, one could say, or see, some correlation with the UBS estimate noted in this article.

      I am not saying it’s a “magic ball,” but it’s a proven tool highlighting correlations.

  3. This kind of market manipulation by UBS by pumping and dumping is also done in Commie China where it would have been unthinkable during Mao before it turned into a full blown Capitalist enterprise with only an overlay of Communism to make itself feel like a good Communist.

  4. Man, those commies did it right and knew how to live…when the govt didn’t kill or disappear you.
    Now they focus on just a few in the society for special attention…while gorging on capitalistic riches.

  5. Is THIS the guy at UBS that tanked AAPL and lead the market down today?

    https://www.facebook.com/nummerdrei

    Looks like he killed off his old Linkedin Account:
    David Vogt – Business Analyst – JPMorgan Chase | LinkedInuk.linkedin.com › david-vogt-21a8a317 › en-us
    David Vogt. International Business and Emerging Markets. JPMorgan ChaseThe University of Edinburgh. Edinburgh, United Kingdom20 connections.

    Can anyone confirm this?

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