KeyBanc Reiterates Underweight Rating on Apple Ahead of iPhone Launch Event
KeyBanc has reiterated its Underweight rating on Apple Inc., predicting a negative reaction from investors ahead of the company's September 9 iPhone launch event. The firm set a price target of $250 for the stock, which currently trades at $328.21, near its 52-week high of $344.57. KeyBanc analysts believe that Apple is overvalued at current levels, with 13 analysts revising their earnings estimates downward recently.
The main unknown revealed at the presentation will likely be iPhone pricing, which could have significant implications for gross margins and unit volumes. A larger price increase might soften gross margin pressure but would impact unit volumes and bring sticker shock to consumers. Conversely, more selective price increases would amplify focus on gross margins and the possible need for future price hikes.
Historically, Apple's September events are typically followed by modest negative reactions in shares. The firm noted that investors seeking deeper insights into Apple's valuation and growth prospects can find expert analysis and additional ProTips in InvestingPro's comprehensive Pro Research Report.