Rosenblatt sees Apple fundamentals deteriorating, downgrades to Sell

Rosenblatt analyst Jun Zhang downgraded Apple to Sell from Neutral, citing his view that its fundamental will deteriorate over the next 6-12 months. Zhang believes new iPhone sales will be disappointing, iPad sales growth will slow in the second half of 2019, and that service revenue growth will also decelerate. His analysis of retail data suggests overall iPhone sales were flat month-over-month in June and he expects major iPhone upgrades to be pushed out to the second half of 2020 given what are seen as limited upgrades for the new iPhone models in the fall and expectations of a 5G iPhone in 2020. While Zhang cut his rating to Sell, he does not see Apple as a stock to short, noting that the company has "plenty of cash and a meaningful stock buy back program," the analyst added. Zhang keeps a $150 price target on Apple shares, which are down $2.86, or 1.4%, to $201.37 in pre-market trading.

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