Rosenblatt analyst Jun Zhang lowered the price target on Apple (NASDAQ: AAPL) to $165.00 (from $200.00) while maintaining a Neutral rating.

Zhang said FY2019 consensus revenue and EPS estimates need to come down.

"We have lowered our C1Q19 iPhone shipment estimates twice over the last two months," Zhang said. "We currently forecast Apple will produce ~39 million units and ship ~39 million units for the March quarter. Although we are at the low end of consensus iPhone estimates, we believe the street will continue to trim down their estimates."

The firm is reducing FY19 revenue/earnings estimates (by -1.2%/- $1.75) and introducing our FY20 estimates. They reduce FY19 estimates from $272.3B/$12.87 to $269B/$11.12. This is -3.4%/-$2.23 below consensus estimates. They reduce gross margins 150 bps to 36.9%.