Needham analyst Laura Martin has maintained their neutral stance on AAPL stock, giving a Hold rating yesterday.
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Laura Martin’s rating is based on Apple’s pricing strategy, which she views as detrimental to shareholder value. She notes that Apple’s iPhone prices have not kept pace with inflation since 2019, attributing this to a lack of significant innovation in their products. This ‘good enough’ approach, according to Martin, has resulted in a 13% loss in potential revenue for Apple, as the company has been unable to leverage new features or innovations to justify higher prices.
Martin highlights that while Apple frequently promotes new features and capabilities, Wall Street’s focus remains on revenue growth and free cash flow. She suggests that Apple’s inability to introduce groundbreaking features has limited its pricing power, preventing it from increasing prices in line with or above inflation. Consequently, Martin has given a Hold rating, reflecting her view that Apple’s current pricing policies and innovation levels do not support a more favorable investment outlook.
According to TipRanks, Martin is a 5-star analyst with an average return of 10.6% and a 51.71% success rate. Martin covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Paramount Skydance, and Meta Platforms.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $205.82 price target.