November 14 (UPI) — Apple Inc. has a rare bearish rating after Maxim Group downgraded it from holding to sell, pointing to a possible drop in iPhone revenue next year. Analyst Nehal Chokshi cited an analysis of a proprietary survey that predicted weakness in both mobile phone sales and average selling prices.
Chokshi said the survey data “leads us to expect iPhone revenue in the second quarter of 2020 to be 14% lower than the consensus and 6% lower for the full year,” and also expects iPhone revenue to fall 5 percent in Apple’s 2020 fiscal year and a 2 percent decline in Apple’s operating profit. Because the continued growth in services and wearables will only partially offset the decline in the iPhone. ”
Maxim’s target price for Apple shares is $190, nearly 30 percent below the record high of $264.47 set wednesday. Apple’s share price has risen more than 50 percent from its June low. The stock was down 0.6 percent in premarket trading.
Apple’s selling ratings are rare, although shorts have been growing this year. The data showed that 27 institutions gave the stock a “buy” rating, 15 recommended holdings, and Maxim was the sixth company to be recommended to sell. The average target price for Apple shares is $256, about 3 percent below Wednesday’s closing price.