Asia FX cautious amid US govt shutdown; yen tumbles after Takaichi’s LDP win
Investing.com -- Apple was downgraded for the second time on Thursday, this time to Neutral from Buy by DA Davidson, which argued that the company’s recent product announcements and AI strategy have failed to deliver the innovation needed to drive a major upgrade cycle.
The firm maintained its $250 price target.
Phillip Securities has already cut its rating on Apple to Reduce with a $200 price target on Thursday, citing tariffs, high capital expenditure, and a lack of AI innovation.
Meanwhile, DA Davidson wrote: “Following recent product announcements that have left us uninspired, we believe that Apple may not significantly leverage AI anytime soon.”
They added that until Apple can “redefine their current products or develop compelling new ones, we believe growth will remain constrained under the status quo.”
The analysts criticised Apple’s core lineup, noting that “both the iPhone 16 family, and the recent announcement of the iPhone 17 and iPhone Air leave us questioning whether they are compelling enough to warrant any meaningful upgrade cycle.”
The analysts added that the anticipated foldable iPhone, expected next year, may not provide the boost needed.
DA Davidson also flagged Apple Intelligence’s staggered release, calling it “a relative failure by traditional Apple standards” that undermined the iPhone 16 cycle.
Meanwhile, turbulence in China continues to weigh on growth, with the firm highlighting that “the lack of innovation at Apple has resulted in the impact from overseas competition increasing as there are now a handful of just-as-good if not better alternatives.”
At 28x CY26 earnings on 9% growth, DA Davidson concluded that investors are “mostly paying for defense,” and pointed to stronger upside potential in Microsoft and Nvidia.