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