Apple Stock Tumbles on Jefferies Downgrade and Price Target Cut
Apple's stock fell by about 0.6% on Wednesday morning after Jefferies analyst Edison Lee downgraded Apple to Underperform from Hold and reduced his price target to $263.66 from $285.56.
The move came as a warning shot, with the stock trading above $300. The drop was not the first reaction to the call, as Apple had already fallen 1.5% on Monday after the news surfaced.
Lee's bearish view centers around Apple's iPhone business, which he believes may struggle to drive sales through new hardware innovations or premium pricing.
The analyst also questioned whether Apple's AI strategy can become a strong enough reason for customers to upgrade their devices. Supply-chain indications of a rumored glass-heavy iPhone redesign added fuel to the bearish case, although Apple has not confirmed the device or its reported cancellation.