Apple downgraded at Rosenblatt as ‘valuation peaks’

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They told investors in a note that as Apple’s valuation peaks, its growth “takes a coffee break.”

“After a mixed F3Q23 that highlights the slowdown phase in which Apple now sits, we downgrade the stock to Neutral from Buy and keep our price target at $198,” the analysts wrote.

Singing the tech giant’s praises, the analysts said Apple “makes the most important device of the modern economy — the iPhone” while it has also “executed an impressive upgrade to Macs with the pivot to Apple Silicon and is re-accelerating services.”

However, they acknowledged that a slowdown in the U.S. seems “likely to last until a material new product category takes hold.”

“That is uncertain both in timing and success, leaving little reason to favor shares now trading near peak absolute and relative multiples,” they added.