Apple stock outlook: LightShed analyst warns of a 33% downside

Apple Inc (NASDAQ: AAPL) has come a bit under pressure in recent days but a LightShed Partners analyst warns that could exacerbate significantly moving forward.

The bear case for Apple stock

China – an economy that accounts for about one-fifth of the overall revenue for the iPhone maker restricted its government officials from bringing their iPhones to work this week as Invezz reported here.

But Walter Piecyk – a Senior Analyst at LightShed Partners has a “sell” rating on Apple stock for reasons that go well beyond Beijing.

Even in a strong economy which we’ve had for a very long time, customers have extended how long they’ve been holding on to their iPhones.

Note that the tech behemoth has already have three straight quarters of revenue decline (read more). Its shares are still up well over 40% versus the start of this year.

China is not the only headwind

Piecyk sees downside in Apple stock to $120 – a price objective that suggests it could tank a whopping 33% from here.

The LightShed Partners analyst does acknowledge China as well as regulation as a real risk for the iPhone maker. But he also said today on CNBC’s “Squawk Box”:

In emerging markets, the question is how much growth can you really get given the price of the iPhone and especially given the rumours that they want to jack up that price even more.

Earlier this week, the European Union also listed a few of the magnificent seven, including Apple Inc as “gatekeepers” under its recently enforced Digital Markets Act. Dan Niles of Satori Fund now has Apple as his largest single stock short.