Apple’s stock drops on analyst downgrade and bleak iPhone outlook

Apple Inc.’s (NYSE: AAPL) shares were down by 2.1% in midday trade on Monday after Rosenblatt Securities downgraded the stock from Neutral to Sell on grounds that there was less reward in owning the stock. The firm maintained its price target of $150 per share.

Analyst Jun Zhang said in a note to clients that although
the firm didn’t consider Apple’s stock as a short, it believes the company will
face fundamental deterioration over the next 6-12 months. The firm believes new
iPhone sales will be disappointing and that iPad sales growth will slow in the
second half of 2019 while other product sales growth may not be meaningful to
support total revenue growth.