FX168 Financial News (North America) reported that MoffettNathanson has downgraded Apple’s rating from "Neutral" to "Sell" and set the Target Price at $188, indicating a 22% downside from the current level. #2025 Market Outlook#

According to Bloomberg's data, among more than 60 analysts on Wall Street covering Apple, only 4 have given "Sell" or "Equivalent to Sell" ratings.

On Wednesday (January 8), as of the time of writing, Apple’s stock price fell by 0.14%, reported at $241.88.

(Source: Yahoo Finance)

Analyst's Viewpoint: The rise in stock price lacks fundamental support.

Craig Moffett, Senior Analyst at MoffettNathanson, stated that although Apple is still a "truly great company," its stock price has seen an irrational increase in the face of accumulating negative news.

"In the past few months, Apple’s stock price has steadily increased, but in fact, negative news surrounding Apple has been on the rise," Moffett pointed out in his downgrade report.

Multiple adverse factors hit Apple.

Moffett listed a series of adverse factors affecting Apple, including:

Court ruling: A federal judge ruled that Google (Alphabet) paying Apple $25 billion annually to ensure it becomes the default Search Engine on iPhone is illegal.

Weak performance in the China market: Apple's iPhone sales in the Chinese market are poor.

Vision Pro's mediocre performance: Apple's Vision Pro headset failed to meet sales expectations.

Concerns arise over lackluster iPhone 16 sales.

Moffett is particularly concerned about the tepid sales of the iPhone 16, even though Apple launched a new AI Software update.

"We are not only not seeing signs of a replacement cycle (which itself is worrying), but there is increasingly more evidence that consumers are responding lukewarmly to AI features," Moffett said.

Considering Apple's high valuation, Moffett believes that currently,risk-return ratio.it is unfavorable for investors.

Moffett pointed out: "In this challenging context, we find the outlook for Apple Stocks extremely unappealing."

Valuation is nearing historical highs, and growth rates are slowing.

Moffett also mentioned that Apple's valuation is approaching historical extremes. Among the technology stocks referred to as the "Magnificent Seven," Apple has the highest valuation but the slowest growth rate.

"If the iPhone 16 performs better than expected, or if Apple's AI technology can bring significant growth opportunities for its Service Business, it might be understandable," Moffett added. "However, the reality is that the market has driven up Apple's stock price, but the many risks that worry us have not only not disappeared but have actually intensified."