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.