Apple Stock Slapped With Another Sell Rating: What to Know
The latest Apple stock downgrade centers around iPhone sales and the weakening consumer electronics market. Here's what investors need to know.
Apple (AAPL) is the worst Dow Jones stock Tuesday after financial services firm Jefferies downgraded the tech giant to Underperform (equivalent to a Sell) from Hold and lowered its price target to $200.75 from $211.84.
Apple stock returned more than 30% in 2024, but Jefferies analyst Edison Lee is concerned that "weak demand for the iPhone has materialized," while other products, such as the iPad and MacBook, may also disappoint due to a "weak" consumer electronic market.
"We expect AAPL to miss its revenue growth guidance of 5% for the first quarter of fiscal 2025 and guide to only low single-digit revenue growth in the second quarter of fiscal 2025, also below consensus," Lee says.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The company's artificial intelligence (AI) outlook is "subdued" and industry checks suggest Apple's "advanced packaging roadmap for iPhone may face a delay is another negative sign," Lee adds.
The new price target of $200.75 implies downside of more than 9% to current levels.
Most of Wall Street still rates Apple a Buy
The majority of Wall Street remains bullish toward the tech stock, suggesting investors shouldn't be too worried about Jefferies' downgrade of the mega cap.
According to S&P Global Market Intelligence, the average analyst target price for AAPL stock is $246.14, representing implied upside of about 11% from current levels.
Additionally, of the 46 analysts covering the blue chip stock tracked by S&P Global Market Intelligence, 23 have it at Strong Buy, eight call it a Buy, 11 say it's a Hold, and just four call it a Sell or Strong Sell. This works out to a consensus recommendation of Buy and with strong conviction.
Financial services firm CFRA Research is one of the more bullish outfits on AAPL stock with a Buy rating and a $260 price target.
"We still like the AAPL story given its aging installed base and broadening AI features and geographic availability that will support upgrades (we expect China partnership announcements soon), potential higher prices, higher Services revenue, a strong pipeline not reflected in estimates, and margin upside being underestimated," wrote CFRA Research analyst Angelo Zino in a January 16 note.
However, the analyst warned of "muted China demand" and "recent forex moves" as creating possible "downside risk to consensus estimates."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
-
Take It From a Tax Expert: The True Measure of Your Retirement Readiness Isn't the Size of Your Nest EggA sizable nest egg is a good start, but your plan should include two to five years of basic expenses in conservative, liquid accounts as a buffer against market volatility, inflation and taxes.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.
-
New Opportunity Zone Rules Triple Tax Benefits for Rural Investments: Here's Your 2027 StrategyNew IRS guidance just reshaped the opportunity zone landscape for 2027. Here's what high-net-worth investors need to know about the enhanced rural benefits.

