Apple price target lowered to $125 from $170 at Bernstein

Bernstein analyst Toni Sacconaghi lowered the firm’s price target on Apple to $125 from $170 and keeps a Market Perform rating on the shares. The analyst sees IT hardware as a “structurally challenged sector,” with trading stocks rather than core long term holdings. Citing continued macro uncertainty into 2023, Sacconaghi encourages investors to begin the year by looking for names with “attractive valuations, good earnings visibility and a track record of strong execution.” He recommends a modest overweight in IT hardware. iPhone revenues this year are likely to disappoint, creating the potential for downward estimate revisions, Sacconaghi tells investors in a research note. While Apple’s recent share weakness suggests investors may be expecting negative revisions, Apple “appears expensive relative to other FAAMG and large cap tech names,” he writes.