Apple Inc AAPL shares are trading lower Thursday following bearish analyst coverage from BofA Securities following reports of a pullback in iPhone 14 production plans.
BofA Securities analyst Wamsi Mohan downgraded Apple from Buy to Neutral and lowered the price target from $185 to $160.
On the other hand, Rosenblatt analyst Barton Crockett upgraded Apple from Neutral to Buy and raised the price target from $160 to $189.
What Happened: According to a Bloomberg report citing people familiar with the matter, Apple told suppliers to pull back on efforts to increase the iPhone 14 product family by as many as 6 million units in the back half of this year "after an anticipated surge in demand failed to materialize."
Apple had reportedly increased its sales outlook ahead of the iPhone 14 launch and some of the company's suppliers had started preparing for a 7% boost in orders.
The report suggests that the better-than-expected iPhone 14 Pro/Pro Max demand is likely being offset by weaker iPhone 14/14 Plus demand. As a result, Apple now aims to produce 90 million iPhones during the second half of the year.
Several analysts questioned the accuracy of the report on Tuesday. Loup Ventures' Gene Munster noted that demand trends continue to be strong.
"We've checked iPhone demand over eight countries in the last day through lead times. They continue to be elevated," Munster said at the beginning of the week.
Wedbush analyst Daniel Ives echoed a similar sentiment on Twitter following the report.
AAPL Price Action: Apple has a 52-week high of $182.94 and a 52-week low of $129.04.
The stock was down 2.26% at $146.49 at time of publication.
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