At least that's according to one analyst. Mizuho Securities analyst Abhey Lamda cut his rating on Apple (AAPL) - Get Apple Inc. (AAPL) Report shares to neutral from buy on Sunday. Lamda's new price target was trimmed to $150 from $160 on the belief the stock's surge this year "fully captured" the euphoria over Apple's next great iPhone. The analyst also voiced concern on consumer demand amid the iPhone's alleged $1,000 price tag.
"We concur that the upcoming product cycle is likely to drive a strong holiday season following into early next year; however, we believe strength is anticipated and see very limited upside to estimates from here."
The downgrade on one of the most important tech stocks around will unlikely do anything to soothe frayed investor nerves.
This is a "statement downgrade," TheStreet's Jim Cramer, manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. "Someone wants to make a name [for themselves] and it's Mizuho," he added.
For investors who had never heard of Mizuho, well, now they have, Cramer reasoned.
He pointed out that the analyst downgraded the stock following a near-4% decline in Apple shares Friday and ahead of more pressure on tech stocks Monday, with the PowerShares QQQ Trust ETF (QQQ) - Get Invesco QQQ Trust Report down more than 1% in pre-market trading and down 1.4% in early regular hours trading.
The Nasdaq dropped 1.8% on Friday, its largest decline since a drop of more than 2% on May 17. Apple dropped 3.8% to $148.98, Amazon (AMZN) - Get Amazon.com, Inc. Report fell 3.1% to $978.31 and the red-hot Nvidia (NVDA) - Get NVIDIA Corporation Report lost 6.5% to $149.60.
The tech-heavy Nasdaq declined nearly 1.6% over the past five sessions, its worst weekly decline since the week ended Dec. 2.
Apple shares were down 2.9% to $144.60 in early-afternoon trading on Monday.
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