Apple (AAPL) Stock Down, Barclays Lowers Price Target

Apple's (AAPL) price target was cut to $115 from $121 this morning at Barclays as 'smartphone demand remains tenuous.'
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Apple (AAPL) - Get Report are down by 0.14% to $98.65 in pre-market trading on Friday, as the company's price target was lowered to $115 from $121 at Barlcays this morning. The firm maintained an "overweight" rating on the stock. 

The price cut comes as "smartphone demand remains tenuous," according to the analyst note. The firm decreased its global smartphone outlook on June 14 and said "inputs from the supply chain have not indicated any signs of above-market performance for Apple." 

In response, Barclays has lowered their iPhone unit estimates for the June quarter, September quarter and C2017. 

This is the firm's third consecutive cut ahead of Apple's announcement of its fiscal 2016 third quarter results on July 26. Even if the earnings are lower than expected, Barclays thinks the stock "could work" since the iPhone 7 launch is expected in September. 

But the next "super or mega cycle" will not come until C2017 when Apple jumps ahead to the release of the iPhone 8 "replete with major form factor changes," the firm noted. In the meantime, Apple's inventory of iPhone 5, 5S, and 6 are enough "to support a gradual recovery in growth." 

(Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL? Learn more now.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate APPLE INC as a Buy with a ratings score of B. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: AAPL

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