Apple’s Price Target Cut at RBC on iPhone Demand Woes

Apple Inc.’s price target was trimmed by RBC Capital Markets on Tuesday, the latest investment bank to cite concerns about weak demand for the company’s iPhone line, a factor that has pushed the technology bellwether into bear-market territory over the past several weeks.

“Given sustained data points around soft iPhone demand from supply-chain and others, we think it’s prudent to adjust estimates lower especially as it relates to March-quarter and beyond,” analyst Amit Daryanani wrote to clients. While the stock has already seen pronounced weakness on this issue, “we think investors will wait for data-points/noise level to stabilize before getting more positive on the name,” something Daryanani expects will happen in early 2019.

Daryanani cut his price target to $235 from $240, compared with the average of $228 as compiled by Bloomberg, and also trimmed his 2019 estimates on the Dow component. Yet RBC affirmed its outperform rating on Apple, saying it remains a “core large-cap tech holding” in an “increasingly ‘risk-off’ environment,” given the company’s strong balance sheet and “aggressive” buyback program.

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