Apple (NASDAQ:AAPL) was cut to Neutral from Buy at Rosenblatt on Friday following the company's earnings release, with analysts maintaining a $198 price target on the stock.
They told investors in a note that as Apple's valuation peaks, its growth "takes a coffee break."
"After a mixed F3Q23 that highlights the slowdown phase in which Apple now sits, we downgrade the stock to Neutral from Buy and keep our price target at $198," the analysts wrote.
Singing the tech giant's praises, the analysts said Apple "makes the most important device of the modern economy -- the iPhone" while it has also "executed an impressive upgrade to Macs with the pivot to Apple Silicon and is re-accelerating services."
However, they acknowledged that a slowdown in the U.S. seems "likely to last until a material new product category takes hold."
"That is uncertain both in timing and success, leaving little reason to favor shares now trading near peak absolute and relative multiples," they added.