It’s time to step to the sidelines on Apple, Oppenheimer argued on Wednesday.
Analysts Martin Yang and Andrew Northcutt downgraded shares of the iPhone maker to Perform from Outperform, slashed estimates, and removed their $250 price target.
Apple stock slipped 1.6% to $234.35 in premarket trading Wednesday. Over the last 12 months, shares have gained 28%.
The analyst team cut their revenue and earnings-per-share forecasts for fiscal 2025 and 2026 to below consensus, citing reduced estimates for iPhone sales over the next 12 to 18 months.
“We see a twofold challenge ahead for iPhone growth: 1) stronger competition in greater China and 2) lack of compelling Apple Intelligence and generative artificial-intelligence apps to accelerate near-term device replacement,” they wrote.
iPhone sales have been slower than anticipated since September, and with Apple stock’s high valuation, Oppenheimer believes it will prove difficult for the shares to outperform from here.
Apple reports fiscal-first-quarter earnings on Thursday.