Apple (NASDAQ: AAPL) shares are slightly negative Monday morning after the company was downgraded at Atlantic Equities to Neutral (from Outperform) with a maintained price target of $190.00.

Analyst James Cordwell is the second analyst to downgrade the stock in the past two weeks and the third to cut the rating since December 19th. The analyst believes the signs of soft demand for the iPhone, limited visibility into future iPhone cycles and emerging challenges to the smartphone's market dominance will override the positives from any potential earnings boost on US tax reform.

Cordwell believes December upside to iPhone demand is still possible but sees risks that Q2 2018 guidance will "fall short" of expectations. He comments "...with iPhone X supply having been better than anticipated, we believe much of this strength was pull forward of demand that we (and consensus) had expected in Q2 (Mar), and with some reports suggesting iPhone X is now being curtailed, we see a risk that Q2 guidance will fall short and the current iPhone cycle fails to deliver upside from here."

Shares of Apple traded lower on Monday's open by $1.35 or 0.76% to $177.11.

StreetInsider Premium first published a variation of this article at 4:17AM ET. Try StreetInsider Premium for two weeks free here.