Apple was downgraded at KeyBanc Capital Markets which said shares of the world’s most valuable company are trading near all-time high valuation levels but foresees sales growth as likely to slow.
Kurt Schussler for Bloomberg News:
“US sales are likely to struggle” on a challenging upgrade cycle for the iPhone amid slower consumer spending, analyst Brandon Nispel wrote in a note, cutting his rating on Apple to sector weight from overweight.
While early demand for the iPhone 15 Pro Max has been better than expected, it seems to reflect users shifting from the iPhone 15 Pro, Nispel wrote. While this will help lift the average selling price, it means little change in overall unit sales, according to the analyst.
MacDailyNews Take: So, Apple selling about the same number of iPhones at higher prices is a bad thing. Got it.
Martin Baccardax for TheStreet:
“We expect the U.S. to experience its fourth consecutive y/y decline in F4Q23, potentially carrying into F1Q24,” [Nispel] added. “We’re looking for FY24 revenue growth of 3.5% vs. consensus of >6% where we have a more muted view on revenue across all of AAPL’s revenue segments.”
MacDailyNews Take: So, revenue growth of 3.5% in 2024 – during a likely U.S. recession, no less – is also a bad thing, according to Brandon Nispel’s illogical “analysis.”
KeyBanc Capital Markets clients, you deserve better.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.