- Apple shares fluctuated between gains and losses on Wednesday after a rating downgrade from KeyBanc, which expects the company's U.S. sales growth to slow.
- KeyBanc reportedly said Apple sales are expected to remain weak. until at least the first quarter of fiscal 2024.
- KeyBanc also suggested that Apple's revenue and profit estimates are high enough that there will be little room for upside surprises when the company releases its earnings report. .
Apple shares fluctuated between gains and losses in early trading Wednesday after KeyBanc lowered its rating on Apple (AAPL) from “overweight” to “sector weight,” anticipating weak U.S. sales growth
KeyBanc analyst Brandon Nispel , reportedly suggested that U.S. sales could “struggle” in the first quarter of fiscal 2024 amid slowing consumer spending. And while a shift in demand toward higher-end iPhone models could increase average selling prices, it could have little impact on overall unit sales, Nispel warned.
Nispel also reported relatively high earnings estimates Apple's top and bottom lines could leave less room for significant surprises when Apple reports its latest results.
KeyBanc wasn't the only research department to recently downgrade the company. Last month, Rosenblatt Securities also lowered its rating on Apple shares to “neutral” in early September. highlighting slowing iPhone sales and uncertainty in new product categories.
The actions of Apple initially fell after the news, but rebounded in early trading Wednesday morning and was up 0.3% at 12:15 p.m. Eastern Daylight Time. Despite being down 12% from its July peak, Apple shares are still up more than 38% year to date.
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