Jefferies has advised investors to consider selling their Apple stock due to concerns over the tech giant’s expected revenue figures. Analyst Edison Lee has downgraded Apple’s shares from a “hold” to an “underperform” rating. Along with this downgrade, Lee has also reduced the price target from $211.84 to $200.75, implying a potential decline of 12.7% in the stock’s value.
According to Lee, Apple is likely to fall short of the anticipated 5% revenue growth for the first quarter of their 2025 fiscal year, with earnings scheduled to be reported later this month. Furthermore, he predicts that the company will offer second-quarter guidance showing revenue growth in the low single digits, which would be below what analysts have generally been expecting.
One major concern highlighted by Lee is the seemingly lukewarm outlook for artificial intelligence at Apple. This is significant as the tech world has been heavily focused on AI advancements for some time now. Besides the cautious stance on AI, Lee points to disappointing iPhone sales as another factor potentially impacting Apple’s revenue.
It’s worth noting that Lee’s perspective is somewhat divergent from the consensus on Wall Street. As per Tipranks.com, 19 analysts recommend buying Apple, while six suggest holding it. Only three analysts, including Lee, currently advise selling. In 2024, Apple’s stock has already slipped over 8%, impacting the significant 30% gains it achieved last year. Investors will be keeping a close watch when Apple announces its earnings on January 30.
