Another downgrading is applied to Apple's stock on "full" valuation

Apple shares have been lowered to Neutral by Redburn analysts, who also set a $200 price target per share.

Since Barclays and Piper Sandler lowered Apple shares last week, this is the third analyst to cut their rating this year. Furthermore, last week, DA Davidson began research coverage with a Neutral rating.

Analysts predict a return to iPhone growth in CY24, but they also see limited upside potential in the upcoming years. This forecast may be impacted by a potentially disappointing March quarter.

The analysts stated in a note that "we believe each of the two parts of the business [Products and Services] faces some challenges that will limit any further multiple expansion for each of the components."

Meanwhile, growing regulatory risks might make Apple's ecosystem monetisation more difficult.

The analysts also pointed out that for the first time in a long time, AAPL's P/E ratio is currently higher than Nike's. The value "now appears full" as a result.

As we look ahead, we predict that Services' contribution to EPS will rise, albeit very slowly, from its current 46% to 49% at YE26. The analysts concluded, "We see limited potential for further multiple expansion from evolving business mix."

(Sources: investing.com, reuters.com)