Apple (AAPL) is facing stronger competition in China and a “lack of compelling Apple Intelligence and generative AI apps to accelerate near-term device replacement,” analysts at Oppenheimer said Wednesday, downgrading the tech giant’s stock to Perform from Outperform.
The Oppenheimer analysts cut their forecast for fiscal 2026 EPS by 4% to $7.95 based on reduced estimates for iPhone sales in the next 12-18 months. Analysts surveyed by FactSet expect $8.22 per share.
With slower-than-expected iPhone sales and a lofty valuation, “we believe it will be challenging for AAPL to outperform,” Oppenheimer said.