Fed Governor Adriana Kugler to resign
On Friday, Itau BBA maintained its Market Perform rating on Apple stock with a consistent price target of $254.00. The research firm’s stance comes amid concerns about Apple’s growth prospects and competitive challenges, particularly in China. According to InvestingPro data, Apple currently trades at a P/E ratio of 39.11x and shows modest revenue growth of 2.61%, supporting these concerns. The company appears overvalued based on InvestingPro’s proprietary Fair Value model. Itau BBA analysts cited a lack of earnings per share (EPS) growth for the technology giant over the past three years and the absence of a faster replacement cycle for Apple products as key factors in their assessment.
The analysts noted that while Apple’s development of distilled models might advance edge AI technology, they question whether the market can continue to overlook the company’s stagnant growth and innovation issues when compared to other major tech firms. This concern is reflected in InvestingPro data showing 10 analysts recently revising their earnings estimates downward. Apple’s high price-to-earnings ratio of 28.9 times for the calendar year 2026 also contributes to Itau BBA’s cautious perspective.
The commentary from Itau BBA reflects a growing skepticism about Apple’s ability to maintain its market position given the current competitive environment and high valuation. The analysts expressed a more bearish bias due to the recent recovery in Apple’s stock price, which seems at odds with the underlying concerns about the company’s performance and market dynamics.
Apple’s stock performance and valuation will likely continue to be closely watched by investors as the company navigates the challenges highlighted by Itau BBA. The firm’s reiterated Market Perform rating indicates a neutral outlook on the stock, suggesting that investors may want to keep an eye on Apple’s strategic moves and financial results in the coming quarters.
In other recent news, Apple Inc (NASDAQ:AAPL). posted financial results for the December quarter, reporting revenue and earnings per share of $123.4 billion and $2.40, respectively. This represented a 4% year-on-year revenue increase. Apple’s services revenue saw a 14% increase, iPad sales grew by 15%, and Mac sales rose by 16%. However, iPhone sales decreased slightly by 1% year-over-year. In terms of analyst adjustments, firms like Baird, Needham, and JPMorgan maintained positive ratings and price targets, while Jefferies and Redburn adjusted their price targets to $202.33 and $230, respectively. These are recent developments in the financial performance and future outlook of Apple Inc.
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