Shares of Apple fell on Thursday in premarket trading after two analysts cut the tech giant’s price target on weak iPhone demand going forward.
Purchase intention for iPhone « was down across the board » and most significantly in the U.S. and China, UBS analysts wrote in a note to clients late Wednesday, citing a survey. iPhone buying intent in the U.S. has been dialed back to a five-year low, same as iPhone 6S levels, and interest in China also hit a new low, the UBS survey showed.
UBS slashed Apple’s price target to $210 from $225, but maintained its buy rating.
« Investor expectations for this iPhone cycle are muted. Consensus estimate for iPhones in 2019 is for roughly 2 percent unit decline and about 1 percent revenue growth, » UBS analyst Timothy Arcuri wrote in a note.
Rosenblatt Securities also cut Apple’s 12-month price target to $165 from $200 on lower iPhone shipment estimates.
« We have lowered our iPhone shipment estimates for C1Q19 twice over the last two months, » Rosenblatt analyst Jun Zhang wrote in a note on Thursday. « Although we are at the low end of consensus iPhone estimates, we believe the street will continue to trim down their estimates. »
Rosenblatt reduced its earnings estimates on Apple for 2019. The firm is now more than 3 percent lower than the Wall Street consensus earnings estimate.
Apple shares were down 2.3 percent in premarket trading on Thursday adding their already 21 percent rout so far this quarter.