Apple Stock Falls as Jefferies Downgrades; JPM lowers price target

• Apple shares were down on Tuesday after Jefferies downgraded the stock to “hold” from “hold” on Monday.

• Jefferies said iPhone sales and its artificial intelligence (AI) features in new models would cause the tech giant to lower its quarterly revenue forecasts.

• JPMorgan analysts stuck with an overweight call on Apple on Tuesday but lowered their price target to $260 from $265, citing a caveat about the company’s outlook.

apple (APL) shares fell on Tuesday after Jefferies downgraded the stock to “underperform” from “hold” on Monday, according to Pointing to iPhone sales And his weak will Artificial Intelligence (AI) The features in the new models are expected to lead the tech giant to beat its quarterly revenue forecasts.

Jefferies lowered its price target on Apple to $200.75 per share from $211.84.
Apple is set to report first-quarter 2025 numbers on Thursday, January 30.

“We are lowering forecasts due to weak iPhone sales and the overall (consumer electronics) market, and our outlook for the iPhone 17/18 is lower due to AI adoption and commercialization,” Jefferies analysts wrote. Quarter 2025 revenue guidance of 5% growth. The tech company’s guidance for the March quarter “may also disappoint,” he said.

Separately, JPMorgan (JPM) analysts stuck with an overweight call on Apple on Tuesday but lowered their price target to $260 from $265, citing caution about the company’s outlook.

Among the worries: a strong dollar at a time when demand for Apple products is limited, and “flat unit sales” relative to current AI features, as well as weak Chinese demand. He said Apple will continue to lose market share in China, where it is already “past the peak of the product cycle” and that the company’s premium phones do not benefit from local government subsidies for low- to mid-range phones.

Apple Last Thursday, stocks fell significantly According to data from research firm Canalys, the tech giant lost its position as the largest smartphone seller in China last year. Apple’s China iPhones are not equipped with the recently launched AI feature.

The stock fell about 3.5% on Tuesday to around $222.40 and has lost about 12% in 2025.

Read the original article on Investopedia