Jefferies told investors to dump Apple stock, warning of a potentially weak revenue number from the technology giant. Analyst Edison Lee downgraded shares to underperform from hold. Lee also cut his price target to $200.75 from $211.84, now reflecting the potential for shares to drop 12.7%. Lee said Apple should miss the revenue growth forecast of 5% for the first quarter of the 2025 fiscal year when it reports later this month. He said the company will likely guide second-quarter revenue to a percentage in the low single digits, which would also come in lower than consensus forecasts. Beyond financials, Lee called the outlook for artificial intelligence “subdued” at Apple. That can be a concern for market participants, whose attention has largely been focused on the potential of the technology for more than a year. In addition to chilled AI interest, he said poor iPhone sales can also be a reason for the weak revenue. To be sure, Lee’s downgrade is out of line with Wall Street. Nineteen analysts say to buy Apple and six say it’s a hold, according to Tipranks.com. Just three other analysts recommend selling the shares. The stock has dropped more than 8% in 2024, taking a chunk out of last year’s 30% surge. Apple reports earnings on Jan. 30.
