Cleveland Research Cuts Apple to Neutral, Lowers FY13, FY14 Estimates Amid iPhone, iPad Unit Risk

Cleveland Research analyst Benjamin Bollin downgraded Apple

from Buy to Neutral early Tuesday morning. Despite the bearish note, Apple shares are trading up nearly 2 percent to $428.81 at last check. Bolin cited iPhone/iPad unit risk and gross margin pressure based on possible lower-priced versions cannibalizing sales of the traditional models. The iPhone 5S is rumored to release in August; the iPad update may come as early as April. Bolin lowered his FY13 EPS estimate from $46.27 to $42.18 and his FY14 estimate from $51.89 to $42.83. Analysts are currently looking for FY13 EPS of 44.57 and FY14 EPS of $50.76.