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