BofA analyst Wamsi Mohan downgraded Apple to Neutral from Buy with a price target of $160, down from $185, noting that shares have outperformed significantly year-to-date as the stock has been perceived as a “relative safe haven.” However, he sees risk to this type of outperformance continuing over the next year given that Mohan expects material negative estimate revisions to be driven by weaker consumer demand, first for services followed by products. His FY23 revenue and EPS estimates of $379B and $5.87 are “significantly” below consensus, though he also notes that the FY23 EPS consensus has only compressed from its peak by a small amount.
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