Jefferies downgrades Apple to “underperform,” calls iPhone sales expectations “excessive”
Sure, Apple’s latest iPhone is selling better than some previous models, but that’s already reflected in the stock, Jefferies analysts wrote in a note today. In it they downgraded the stock to “underperform” and kept the price target roughly flat at $205.
The analysts argue the sales bump stems from high trade-in values and the lack of price hikes, rather than “new form factor or tech innovations.” As we recently noted, it could also have something to do with a natural upgrade cycle rather than consumers going nuts over NITS.
The analysts say the positive sales momentum for the iPhone 17 has engendered “excessive expectations” for the replacement cycle as well as for the company’s upcoming foldable iPhone.
“We do not doubt AAPL will be able to make the most beautiful foldable phone in the market, but the question is the TAM [total addressable market] of a US$2K phone,” they wrote.
