Someone took a bite out of Apple

Bank of America analysts downgraded Apple on Wednesday to Neutral citing “risks should not be ignored”. This comes as they also increase the price target from $420 to $470 “which assumes low-single digit year over year revenue growth and flat margins.”

“We are downgrading shares of AAPL to Neutral as we view risk reward more balanced at these levels”

BoA sees risks particularly in costs to manufacturing their 5G iPhones, an unsustainable trajectory (30% growth) due to high margin App Store growth and a potential risk of a higher tax rate should the Democrats win in the U.S. elections.

Enjoyed this post? Get more like this in the weekly newsletter!