Rosenblatt slaps a Sell on Apple

But analyst Jun Zhang, an Apple bear since last Fall, left his Street-low $150 price target intact. How much lower could he go?

From a note to clients that landed on my desktop Monday:

We believe there is less reward for owning Apple stock after the recent stock rebound from stock buybacks and stable second quarter guidance. We do not think Apple is a short (the company has plenty of cash and a meaningful stock buy back program), however, we believe Apple will face fundamental deterioration over the next 6-12 months. We downgrade Apple from Neutral to Sell and maintain our $150 price target.

Adding to our Sell thesis, we believe new iPhone sales will be disappointing, iPad sales growth will slow in the second half of 2019, other product sales growth, such as the HomePod, AirPod and iWatch, may not be meaningful to support total revenue growth.

After strong service revenue growth over the last 4-6 quarters and the launch of Apple Music and news, we believe service revenue growth will also decelerate.

Lowers rating to Sell from Neutral, maintains $150 price target. 

My take: Zheng has been sitting on the bottom of the pond for so long (see below) that the reaction in premarket trading strikes me as pretty dumb. See, for example, Marketwatch’s Apple stock falls after Rosenblatt downgrades to sell.

Below: Friday’s price target spreadsheet.

jun zhang apple bear

Click to enlarge.

10 Comments

  1. David Emery said:

    At times I wonder why no one in the business press checks the track record, or at least the target price, for these ANALyst comments. Then I remember, it’s not about journalism, it’s about clicks. 🙁

    2
    July 8, 2019
    • Michael Thompson said:

      It’s about robbing the public first and foremost and “journalists” are as involved in the fraud as the criminal analysts and brokerages. Without having control over the “news”, the criminal swindle would end.

      Find me one article where it states that Jun Zhang is a LONG-TERM Apple bear, long-term degenerate liar and long-term criminal.

      0
      July 8, 2019
  2. Michael Thompson said:

    I’m the longest bull on this board, but I rarely have traded additional shares of Apple. That embargo ends this time. If we go under 190, I’ll be picking up 25,000 additional trading shares. Those shares will be simply for turning a fun and quick profit.

    I’ll sell those shares back over 210 and sooner rather than later.

    0
    July 8, 2019
      • Michael Thompson said:

        Yes, I’ll do so. I failed to take advantage of the Apple selloff from 10/18-1/19 and the May selloff.

        That won’t happen again. If there’s another Apple selloff, I’ll be buying big and selling only the new shares when I’ve received a proper profit.

        I will be trading AND holding Apple shares going forward. I’ll be taking advantage every time that the market sells off Apple in a concerted and unwarranted manner. Massive money can be made in buying Apple when it’s at least 20-25% off it’s all-time high, holding or buying more if it continues to decline and selling when a significant gain is available. I don’t trade options because my strategy has no time limit.

        0
        July 8, 2019
        • Michael Thompson said:

          This strategy has worked 100% of the time throughout Apple’s history.

          I like a 100% chance of success. When Wall Street plays its Apple game moving forward, they’re going to pay me in large amounts of capital gains.

          2
          July 8, 2019
          • Fred Stein said:

            Thanks Michael for your trading “strategy” vs other’s tactics.

            1
            July 8, 2019

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