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Summary
- BofA recently downgraded Apple from Buy to Neutral with a revised price target of $160 from $185.
- As much as Apple is understood as the new gold in the volatile market, fundamentals are not immune to economic cycles.
- Lead times for iPhone 14 are shorter than previous models, while Services revenue may moderate as global app market sees a near-term slowdown.
- As wonderful of a business as Apple is, the stock is not always a no-brainer.
What happened?
BofA has recently downgraded Apple (NASDAQ:AAPL) from Buy to Neutral and cut its price target from $185 to $160. The firm previously had a 2023 revenue estimate of $406.5B (+4% YoY) and EPS of $6.24 (+3.5%) and has now reduced these figures to $379B and $5.87, which are lower than the current consensus of $412B and $6.46. Let’s go through the thinking behind the downgrade and discuss where things may go from here.
| BofA Estimates | Previous | Current | Diff. |
| 2022E Revenue (mm) | 391,166 | 390,695 | -0.1% |
| 2023E Revenue (mm) |
Read Full Story: https://seekingalpha.com/article/4544228-apple-understanding-the-bofa-downgrade
