UPDATE: Bank of America Downgrades Apple on Multiple Negative Factors

In a report published Wednesday, Bank of America analyst Scott D. Craig downgraded the rating on

from Buy to Neutral, but reiterated the $520.00 price target. In the report, Bank of America noted, “We downgrade to Neutral on (1) lack of a ‘lower-end' iPhone and price points that will be too high to increase penetration in emerging markets (2) no China Mobile (CM) agreement, (3) a likely less than expected impact from China Mobile, when/if a partnership is announced – higher than expected pricing, no lower-end iPhone, (4) another ‘evolutionary but not revolutionary' iPhone product launch, and (5) risk to near term GM% estimates, given typical lower GM% on new iPhones (in this case both 5C and 5S, as opposed to only one new launch). On a positive note, the company did add NTT DOCOMO.” Apple closed on Tuesday at $494.64.