Apple shares swoon on Bank of America downgrade

Apple shares fell more than 5% on Thursday after Bank of America analysts handed the stock a rare downgrade.

Apple shares have the longest downturn since May

The downgrade came in the wake of a Bloomberg report Wednesday that said Apple had told some suppliers to drop plans to ramp up production for its new iPhone 14 after not seeing demand as high as expected.

Lauren Feiner for CNBC:

Apple shares fell 4.5% on Thursday after Bank of America analysts handed the stock a rare downgrade.

Analysts downgraded the buy rating to neutral, also cutting the price target from $ 185 to $ 160 per share. They said they expect “weaker consumer demand” in the coming year and pointed to macroeconomic challenges.

A second company, however, did not agree with the BofA rating. Rosenblatt Securities upgraded its Apple rating from neutral to buy and raised its price target to $ 189 from $ 160, which implies a 25% increase from current levels. He made the call after his survey of more than 1,000 U.S. adults showed strong demand for even more expensive new Apple products.

Rosenblatt questioned the production report, writing that there is “a recent history of comparable reports that have proved misleading when actual data comes out.”

MacDailyNews takes: This BofA downgrade is based on fake news; good news buried under old news masquerading as bad news by a misleading headline.

If you use Bank of America for investment advice, reconsider. You may want to check out Rosenblatt Securities as they seem to understand this.

But listen, the scam is going on in some neighborhoods, so use it to your advantage.

The Apple iPhone mix will easily be the strongest ever. Don’t be surprised at reports that Apple has “cut orders for iPhone 14,” aka iPhone 14 and iPhone 14 Plus. The company will likely increase orders for iPhone 14 Pro and iPhone 14 Pro Max to reflect the strong mix that bodes well. obviously for the average selling price of Apple’s iPhone (ASP). – MacDailyNews, September 14, 2022

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