Tech giant Apple (NASDAQ: AAPL) slipped in pre-market trading on Wednesday after it got a surprise downgrade. Top-rated KeyBanc analyst Brandon Nispel, a long-time bull on AAPL, slashed his rating from Buy to Hold citing challenges in U.S. iPhone sales.
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The analyst expects U.S. sales in the fourth quarter to decline for the fourth consecutive year and persist into Q1. Moreover, Nispel’s analysis of credit and debit card spending data indicated “modest weakness.” He also predicted soft sales through U.S. carriers and pointed out that while Wall Street expects AAPL’s international sales to grow, he struggled “to understand why that will be the case.”
Apple is expected to report its Q4 results on October 26. The analyst added that currently, the stock is trading at high multiples as compared to the Nasdaq (NDX), making upside potential uncertain.
Is Apple Stock Expected to Rise?
Analysts are cautiously optimistic about AAPL stock with a Moderate Buy consensus rating based on 20 Buys and nine Holds. The analysts have a consensus price target of $207.69 on the stock, implying an upside potential of 20.5% at current levels.