New Street Research analyst Pierre Ferragu has placed a “Sell” rating on Apple, the world’s most valuable company.
New Street Research analyst Pierre Ferragu slashed his price target on Apple by 28%, to $90 a share, and lowered his rating to “sell,” from “neutral,” joining only one other analyst — and none of the major investment banks — in questioning the group’s near-term prospects.
Ferragu argues Apple’s iPhone 12 sales, boosted by bets on 5G network expansions around the world, are unsustainable and could slow significantly into the second half of the calendar year. He also thinks the next line-up of iPhones will lack the innovation need to entice new customers and upgrades while pegging his 2022 financial year shipment forecasts in the range of 180 million to 200 million, around 20% below the Street consensus at the midpoint.
MacDailyNews Take: We’re all for shaking out the weak-kneed and generating a nice AAPL sales price price, but let’s keep in touch with some thread of reality, okay?
How is New Street Research’s Pierre Ferragu’s track record, you ask?
iCal sez: Back in August 2018, New Street Research’s Pierre Ferragu downgraded the tech giant from hold to sell, positing, basically, that the iPhone X was too popular therefore citing tough iPhone comparisons in the coming years. Ferragu’s “Sell” rating back then came with a pre-split 12-month price target of $165. One year later, AAPL closed at $212.64 (pre-split).