Apple downgraded to Sector Weight from Overweight at KeyBanc - InvestingChannel

Apple downgraded to Sector Weight from Overweight at KeyBanc

KeyBanc analyst Andy Hargreaves downgraded Apple to Sector Weight saying he sees “little to drive upside” following last night’s Q1 results. The stock in premarket trading is up 2%, or $3.35, to $171.13. Apple’s “massive cash return” should support the stock, but “soft” iPhone sell-through suggests a saturated market, Hargreaves tells investors in a post-earnings research note. Further, he notes that the lack of gross margin upside reduces his view of potential profit growth. The analyst sees 12-month fair value for the shares at $178.