Analyst firm Needham lowered its rating on Apple (AAPL) - Get Report stock to "buy" from "strong buy" on Friday morning. Though technically a downgrade, the firm keeps Apple as a top pick.

The downgrade comes as Apple is within 6% of the firm's target price. Needham cited recurring revenue streams, strong mobile growth, and higher margins as some reasons for the buy rating.

Needham has a $165 price target on Apple stock.

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