Barclays just downgraded Apple stock to ‘underweight’
- Barclays analyst sees 17% downside in Apple stock from here.
- Tim Long explained his bearish view in a research note today.
- Apple ended 2023 up well over 50% from its year-to-date low.
Apple Inc (NASDAQ: AAPL) had a blockbuster 2023 but it is not very likely to repeat that performance in 2024, as per Tim Long – a Barclays analyst.
Apple stock could tank 17% from here
Copy link to sectionLong downgraded the tech behemoth this morning to “underweight” and lowered his price objective to $160 that translates to a 17% downside from here.
The analyst turned dovish on Apple stock due to a weakness in wearable devices, iPads and Macs. His research note also added:
[iPhone 15] has been lackluster and we believe IP16 should be the same – and we don’t see services growing more than 10%.
Long’s view is in sharp contrast with Dan Ives of Wedbush Securities who expects Apple Inc to be a $4.0 trillion company by the end of this year (read more).
Apple’s multiple is not sustainable
Copy link to sectionLong expects the Apple stock to pull back sharply in 2024 “after a year when most quarters were missed and the stock outperformed”.
He warned that this year will be particularly risky for the multinational’s services business and said multiple expansion despite weak results is not “sustainable”.
In November, the Nasdaq-listed firm was reported interested in unwinding its partnership with Goldman Sachs by the end of 2024 (find out more).
Barclays’ bearish call arrives a month before Apple Inc is scheduled to report its financial results for the first quarter. Consensus is for it to earn $2.08 a share versus $1.88 per share a year ago.
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