Shares of Apple were down more than 5% on Thursday after Bank of America analysts delivered the stock a rare downgrade.
The downgrade came on the heels of a Bloomberg “News” report Wednesday that said Apple had told some suppliers to abandon plans to ramp up production for its new iPhone 14 after failing to see as high demand as anticipated.
Shares of Apple were down 4.5% on Thursday after Bank of America analysts delivered the stock a rare downgrade.
The analysts lowered their rating from buy to neutral, also cutting its price target from $185 to $160 per share. They said they anticipated “weaker consumer demand” over the next year and pointed to macroeconomic challenges.
A second firm disagreed with the BofA rating, however. Rosenblatt Securities upgraded its rating on Apple from neutral to buy and raised its price target to $189 from $160, implying a 25% rally from current levels. It made the call after its survey of over 1,000 U.S. adults showed strong demand for even the pricier new Apple products.
Rosenblatt cast doubt on the production report, writing that there’s “a recent history of comparable reports proving to be misleading when actuals come out.”
MacDailyNews Take: This BofA downgrade is based on fake news; good news buried under old news disguised as bad news via a misleading headline.
@technology claims Apple “upgraded its sales projections in the weeks leading up to the iPhone 14 release & some of its suppliers had started making preparations for a 7% boost in orders.”
Proof? A citation? @technology offers none. Who’s the source (& just how short were they)?
— MacDailyNews. Visit and comment @ macdailynews.com (@MacDailyNews) September 28, 2022
If you use Bank of America for investment advice, reconsider. You might want to take a look at Rosenblatt Securities as they seem to get it.
But, listen, the scam is on in some quarters, so use it to your advantage.
Apple iPhone mix is easily going to be the strongest ever. Do not be surprised with the reports that Apple has “cut iPhone 14 orders,” meaning iPhone 14 and iPhone 14 Plus. The company will likely be increasing iPhone 14 Pro and iPhone 14 Pro Max orders to reflect the strong mix which bodes very well, of course for Apple’s iPhone average selling price (ASP). – MacDailyNews, September 14, 2022
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!