Exane BNP Paribas Downgrades Apple (AAPL) to Neutral, 'Hard to justify a premium valuation'

Exane BNP Paribas analyst Jerome Ramel downgraded Apple (NASDAQ: AAPL) from Outperform to Neutral with a price target of $140.00.

The analyst comments "Hard to justify a premium valuation - downgrading to Neutral The stock has been fairly resilient in the current market and is trading at 22x our FY23e EPS, i.e. 10% above its 5-year average with EPS CAGR at ‘only’ 9% over FY23-FY25e. Though Services is still growing (8% CAGR 22-25e), growth is expected to be well below the 21% CAGR over the last 5 years. Thus, we see little reason why Apple should trade at a premium vs its platform peers (now at 22x FY23e PE). As new Hardware products such as AR/VFR and Apple Car might not come before 2024-26, we see no major positive catalyst for the stock and believe the shares are fairly priced. We downgrade the stock to Neutral with a lowered TP of USD140 (from USD180) based on 22x FY24e PE (vs 26x previously)."

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $129.91 yesterday.

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