Analysts Downgrade Apple's Stock Ahead of 'Long Term Problems'
Pacific Crest analysts Andy Hargreaves and Corey Barrett have downgraded Apple's stock to 'sector perform' ahead of what they predict to be long term problems, reports BusinessInsider.
According to the analysts, Apple is going to be trading sideways for the next year. They've set a price target of between $440 and $550.
Here are some of their reasons:
● High-end market for smartphones and tablets will be saturated sooner than expected.
● Demand for 'incremental' hardware improvements is 'waning' meaning less people will update to the latest and greatest iPhone.
● iPad mini will hurt Apple's revenue and EPS growth
● There are no exciting products on the horizon.
● Apple television won't be huge business, will make less money and sell less than iPhone.
● Cheaper iPhone will cannibalize existing sales and profits.
● Software and services revenue are enough to accelerate earnings
Looking at the chart below you can see their iPhone sales estimates for 2013 and 2014.