Bulletin
Investor Alert

Market Pulse Archives

Aug. 5, 2020, 9:58 a.m. EDT

Apple stock downgraded at Bank of America

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Apple Inc. (AAPL)
  • X
    S&P 500 Index (SPX)
  • X
    Dow Jones Industrial Average (DJIA)

or Cancel Already have a watchlist? Log In

By Emily Bary

Bank of America analyst Wamsi Mohan cut his rating on Apple Inc. shares /zigman2/quotes/202934861/composite AAPL -3.17% to neutral from buy Wednesday, writing that he sees a more balanced risk-reward profile for the stock as it's currently trading at its highest premium to the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.12% in a decade. He sees margin risk heading into calendar 2021 given a higher bill of materials, driving up the cost of making 5G iPhones, as well as the potential for unit volumes to take a hit if Apple opts for higher retail prices to make up for the rising materials costs. Mohan also sees "tough compares in 2021 from an unsustainable trajectory (30% growth) of high margin App Store growth" and pressure on services gross margins due to content amortization costs. He raised his price target on the stock to $470 from $420 in conjunction with the downgrade. Apple shares are up 0.5% in Wednesday morning trading and they've gained 48% over the past three months as the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.88% has increased 13%.

/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 106.84
-3.50 -3.17%
Volume: 287.10M
Sept. 18, 2020 4:00p
P/E Ratio
32.48
Dividend Yield
0.77%
Market Cap
$1913.00 billion
Rev. per Employee
$1.98M
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,319.47
-37.54 -1.12%
Volume: 4.09B
Sept. 18, 2020 5:15p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,657.42
-244.56 -0.88%
Volume: 703.89M
Sept. 18, 2020 5:15p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.