Apple Gets Rare Downgrade From Jefferies, Analyst Warns On Slowing Revenue Growth, Missed Forecasts, And Falling iPhone Demand

Apple Inc. AAPL faces mounting pressure as Jefferies downgraded the tech giant to ‘underperform,’ citing concerns over revenue growth, following President Donald Trump's remarks about potential new U.S. investments from the company.

The Apple Analyst: Jefferies analyst Edison Lee cut his price target to $200.75 from $211.84, reported CNBC, projecting a 12.7% downside for the stock.

The rare bearish call stands in contrast to broader Wall Street sentiment, with only three other analysts recommending selling Apple shares compared to 19 buy ratings, according to Tipranks.com. The stock has already declined over 8% in 2024, following last year’s 30% gain.

The Apple Thesis: Lee warns Apple could miss its 5% revenue growth forecast for the first quarter of fiscal year 2025 and expects disappointing second-quarter guidance, citing weak iPhone sales and limited artificial intelligence developments.

The downgrade comes as Trump announced potential “massive investment” plans from Apple in the United States, revealed during his recent victory rally in Washington D.C. Trump cited a conversation with CEO Tim Cook, linking the investment to his election win and broader initiative to expedite approvals for companies investing $1 billion or more in the U.S.

Apple, which recently approached but fell short of a $4 trillion valuation, is set to report earnings on Jan. 30, with investors closely watching for signs of revenue weakness highlighted in the Jefferies report.

The contrasting narratives emerge amid strong market performance, with the tech-heavy Nasdaq 100 gaining 1.9% in its best week since November. Apple’s consensus price target stands at $245.17, based on 30 analyst ratings, with recent analysis from MoffettNathanson, Bernstein, and B of A Securities suggesting a modest 2.25% upside potential.

Price Action: Apple closed at $229.98 on Friday, up 0.75% for the day. In after-hours trading, the stock dipped 0.21%. Year to date, Apple's stock is down 5.69%, but over the past year, it has gained 18.61%, according to data from Benzinga Pro.

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