Apple Receives Rare Underperform Rating from Wall Street Analyst. Is It Time to Sell the Stock?

In a rare move, analysts at Jefferies downgraded one of the largest companies in the world, Apple (NASDAQ: AAPL), to underperform. Wall Street analysts are known for being bullish, so underperform and sell ratings tend to make up only a small percentage of overall analyst ratings.For its part, Jefferies sees weak iPhone shipments in the fourth quarter, with Apple's artificial intelligence (AI) features not resonating with consumers. It cited a survey that most U.S. consumers do not find AI features very useful. As such, it thinks this is an indication that there will not be an AI power upgrade cycle for the iPhone. Jefferies expects Apple to miss current analyst revenue estimates, calling for 5% growth when it reports its Q4 results at the end of January. It also thinks there is a good possibility Apple's Q1 guidance could disappoint as well. Its price target for the stock is $200.75. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool