Apple Adds a Bear as Jefferies Downgrades, Sees 20% Downside

Core Viewpoint - Apple Inc. has received a bearish rating from Jefferies, indicating that market expectations for iPhone upgrades may be overly optimistic [1][2]. Group 1: Analyst Ratings - Analyst Edison Lee downgraded Apple’s stock rating to underperform from hold, citing an overly bullish outlook on iPhone sales [2]. - The consensus recommendation for Apple’s stock is 3.93 out of 5, making it the least favored among the "Magnificent Seven" tech stocks, except for Tesla [3]. - Less than 7% of analysts have a sell-equivalent rating on Apple, while approximately 57% recommend buying [3]. Group 2: Stock Performance - Apple’s stock has increased over 20% since early August, approaching record levels, but remains barely positive for the year compared to a 15% rise in the Nasdaq 100 Index [4]. - The recent stock strength is attributed to stronger-than-expected demand for the iPhone and optimism regarding a forthcoming foldable model [4]. Group 3: Price Target and Market Concerns - Lee noted that the current demand for the iPhone 17, partly due to a price cut, is already reflected in the stock price, leading to excessive expectations for the iPhone 18 Fold and its replacement cycle [5]. - The analyst expressed uncertainty about the market for a phone priced around $2,000 and reduced the price target from $205.82 to $205.16, indicating a potential downside of over 20% from the last closing price of $257.13 [5].