Wedbush analyst Daniel Ives slashed the price target on Apple (NASDAQ: AAPL) stock to $175 per share from the prior $200, citing “demand worries.”

Apple shares closed over 3.7% lower yesterday following a report in Nikkei Asia that the Cupertino-based tech titan is experiencing weakening demand. As a result, Apple reportedly informed its Asian suppliers to ship fewer components for AirPods, the Apple Watch, and MacBooks.

Ives, known to be a long-term Apple bull, slashed the price target as “some demand headwinds start to creep into the Cupertino growth story.” He still reiterated an Outperform rating on Apple stock, the broker’s “favorite tech name.”

“The core iPhone 14 Pro demand appears to be more stable than feared and is still coming out of the supply chain abyss seen in November/December due to the zero Covid lockdowns in China/Foxconn. While March and June could see some cutting of iPhone orders (iPhone 14 Plus remains a major strikeout), we believe the overall demand environment is more resilient than the Street is anticipating and thus we believe baked into the stock is a massive amount of bad news ahead,” Ives wrote in a note.

Apple shares closed at $125.07 yesterday and are trading 0.6% higher in pre-market Wednesday.

By Senad Karaahmetovic