This post was originally published on this site
Bank of America analysts reiterated a Neutral rating and a $160 per share price target on Apple (NASDAQ:AAPL) shares as he sees a “balanced” risk-reward from current levels.
Last week, BofA analysts cut the rating on Apple stock on the back of the weaker consumer demand that should facilitate material negative estimate revisions. Risks such as a weaker iPhone 14 cycle, growth deceleration in Services, and FX headwinds are highlighted by the analysts as reasons why they moved to the sidelines.
BofA’s analysis shows that Apple’s Services business is impacted by the company’s own services and payments from Google (NASDAQ:GOOGL). The analysts note that the historical performance of App Store growth has led to inflections in product revenue growth.
“In our opinion, the recent App store deceleration suggests a broader weaker spend intention,” the analysts said in a note sent to clients today.
Morgan Stanley analysts recently noted that September yielded the slowest App Store growth since at least 2015.
