Global Equities Research analyst Trip Chowdry downgraded Apple (NASDAQ:AAPL) to Sell with a price target of $95.00 per share.
The analyst claims Apple has “zero innovation” with shares mostly supported by buybacks. Moreover, Chowdry adds that the product line is “depleted” as he calls for 0% growth in 2024.
Chowdry lists 9 reasons why he is bearish on Apple stock.
- Apple Sales in Ukraine and Russia have been affected in the March Quarter and will continue to be affected until at least the June quarter;
- Covid lockdown in Shanghai will impact the March and June quarter results;
- Stock Price appreciation based on Stock buybacks, by taking debt, will not work in high-interest rate environment;
- AAPL is losing ground in K-12 and higher education market globally;
- The innovation pipeline is depleted at AAPL - has zero breakthrough products or services;
- Metaverse re-platforming is happening and AAPL will not make it;
- AAPL is a more than a Generation behind Meta, MSFT, IBM, TSLA in artificial intelligence/machine learning (AI/ML);
- AAPL developer ecosystem is getting weak; and
- Investors optimism on AAPL services revenues is misdirected.
All these factors will contribute to a “downhill journey” for Apple stock with recovery being seen as “extremely difficult.”
Apple stock price closed at $161.79 on Friday and is down a further 1.2% in pre-ope Monday.
Chowdry’s price target implies a downside risk of over 40%.
By Senad Karaahmetovic