Apple stock outperformed in 2023 despite posting four straight quarters of declining sales. But without positive catalysts, it is likely to drop in 2024, a Wall Street analyst says.
Barclays analyst Tim Long on Tuesday downgraded Apple stock to underweight, or sell, from equal weight, or neutral. He also trimmed his price target to 160 from 161.
On the stock market today, Apple stock fell 3.6% to close at 185.64.
In 2023, Apple stock advanced 48.2% vs. a 24.2% gain for the S&P 500.
IPhone 15 Sales Called 'Lackluster'
In a client note, Long said sales of Apple's iPhone 15 smartphones have been "lackluster" and the upcoming iPhone 16 "should be the same."
Plus, other hardware categories remain weak for Apple and services revenue probably won't grow more than 10% this year.
"We expect reversion after a year when most quarters were missed and the stock outperformed," Long said.
Long expects Apple to post in-line results for the December quarter but miss current consensus estimates for the March quarter.
Apple Stock Is One Of The Magnificent Seven
Apple stock is on the IBD Tech Leaders list. Plus, it is one of the Magnificent Seven stocks that drove outsized gains last year.
Others on Wall Street remain bullish on Apple's prospects.
Wedbush Securities analyst Daniel Ives on Tuesday reiterated his outperform rating on Apple stock with a price target of 250.
He sees artificial intelligence driving a basket of tech stocks higher in 2024, including Microsoft and Google parent Alphabet.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
