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Once Rare, Downgrading Apple (AAPL) Now Fashionable on Wall Street

March 5, 2013 11:12 AM EST
Once a rarity on Wall Street, sentiment is clearly shift amongst analysts on Apple, Inc. (Nasdaq: AAPL).

Earlier on Tuesday's session, Cleveland Research cut its rating on Apple from Buy to Netural, though the firm didn't issue a price target on the stock. Cleveland's call is the fourth consecutive downgrade from the Street, according to Streetinsider's Ratings Insider.

On January 28th, Baird cut its rating to Neutral. Jefferies lowered its outlook on January 24th. Pacific Crest reduced its outlook to Sector Perform on January 16th. Citi downgraded Apple to Neutral on December 17, 2012.

Actually, since a downgrade by Raymond James to Outperform last July 25th, there has only been one upgrade on Apple, coming in the form of Oracle Investment Research on December 5, 2012. The firm raised its rating to Strong Buy, with a price target of $650.

It's no secret that Apple has had a rough ride over the last few months; shares are down about 40 percent from an all-time high hit last September. But, will Apple be able to shake the current sentiment or need to ride it out until something like an iWatch or high-def smart TV set debuts?

Many are betting on Apple shifting sentiment via a larger return of its $137 billion cash pile to investors. Greenlight Capital's David Einhorn had been pestering management for a better return via Apple's preferred stock, though nothing was mentioned during Apple's annual meeting last week.

If Apple decides to move forward and dole more out via buybacks and dividends, investors might start buying back in hordes.

And who knows? That next upgrade might be the one to start another, more profitable trend.

Apple is up 2.6 percent Tuesday morning.


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