UPDATE: Pacific Crest Securities Downgrades Apple Inc. On Lack Of New Profit Drivers

In a report published Wednesday, Pacific Crest Securities analyst Andy Hargreaves downgraded the rating on

from Outperform to Sector Perform, but removed the $100.00 price target. In the report, Pacific Crest Securities noted, “We were impressed by the new iPhone 6 and 6 Plus, but believe the potential from these devices is largely priced into AAPL at current levels. Further, we believe sales to new iPhone users will decline beyond the iPhone 6, which is likely to prevent iPhone unit growth in F2016 and beyond. We believe anticipation of stagnant iPhone growth will drive multiple compression through F2015 as the iPhone 6 cycle progresses. Even if we stretch our estimates for F2015 iPhone units, the likelihood for multiple compression over that time suggests the majority of potential upside from iPhone 6 is priced into the shares.” Apple closed on Tuesday at $97.99.