Shares of Apple (AAPL - Get Report) rose slightly on Wednesday after the computer and iPhone maker received another downgrade from analysts at HSBC, who remain skeptical about the company's prospects on the hardware side of its business and see it taking more time for it to transition to the services side.
In a research note to clients, HSBC said Wednesday that it has downgraded Apple to reduce from hold, noting that the company's focus on shifting more to services such as Apple Card and streaming content will take additional time to yield results. A reduce rating is the equivalent of a sell. The firm has a $180 price target on the stock.
It's the second time in four months that HSBC has cut its forecast for Apple: In early December, the bank downgraded Apple to hold from buy on concerns over slowing iPhone growth - specifically its dependence on a single product and slowing sales in emerging markets.
Apple shares were up 0.04% to $199.57 in trading Wednesday.
HSBC wasn't the only research firm to weigh in on the stock on Wednesday. Analysts at Bank of America took an opposite view, increasing their price target to $220 from $210 on expectations of a higher upside for iPhone sales.
"We estimate 24% or 216mn units of the 900mn iPhone installed base are older than the iPhone 6. And 50% of those are candidates for upgrade. Of the remaining 684mn newer iPhones (iPhone 6s and later), we estimate 80% or 547mn iPhones were purchased in the primary market, and these phones are also candidates for upgrade," the note from Bank of America said.