Analyst James Cordwell says the upside potential from 5G is already fully priced in.
Atlantic Equities downgraded Apple on Tuesday, saying the run-up in the shares was mainly due to the much anticipated 5G cycle, but were now fully valued.
The firm lowered its rating to underweight (equivalent to a sell) from neutral while raising its price target to $275 from $235.
“We believe upside potential from the 5G cycle is now more than fully priced in,” Atlantic Equities analyst James Cordwell said.
Shares of the company have increased more than 7% so far this year and are up over 111% over the last year. The stock recently reached an all-time high on the heels of reports of surging iPhone sales in China.
“The stock’s 50% relative outperformance over the last 12 months has been driven entirely by multiple expansion,” the analyst said.
Downgrades to Underweight from Neutral while raising price target to $275 from $235.
My take: From the deep end to the shallow end. What kind of move is that?
CORRECTION: An earlier version of this item had the wrong analyst in the headline.