Leading investment bank and capital markets firm Jefferies has downgraded Apple stock from ‘hold’ to ‘underperform’. Analysts from the firm wrote that the tech giant could miss both earnings and guidance targets in the upcoming Q1 2025 report. The development puts AAPL on the back foot as the investment bank does not expect returns from the tech firm.
Also Read: 14% of Americans Invested in TRUMP Coin, Survey Shows
Apple stock is currently trading at the $229 mark on Monday when Trump took the oath becoming the 47th President of the US. It mostly traded in the red but only briefly closed in the green by 0.75%. The downgrade from Jefferies now puts AAPL under muddy territory as it could experience more downsides.
Also Read: 5 Currencies That May Take A Major Hit If De-Dollarization Advances
Apple Stock: Jefferies Predict How Low AAPL Could Dip
Jefferies predicts that Apple stock has a downside and could fall to the $200 level. That’s a downtick and erosion of investment of approximately 13% from its current price of $229. Therefore, an investment of $1,000 could turn into $870 if the forecast turns out to be accurate.
Also Read: Mark Cuban Lauds Dogecoin & Shiba Inu, Eyes TRUMP-Like Meme Coin Launch
In addition, Apple iPhone sales are declining in China which is adding to the company’s woes. Competition and market dynamics are rapidly evolving in China making Apple lose out on a larger stream of revenue. It’s receiving competitive pressure from the homegrown brand Huawei in mobile sales and demand.
Apple stock has remained volatile lately its high debt-to-equity ratio of 209.06% and a trailing P/E ratio of 37.89 are turning burdensome. AAPL could shed its value this month and slide in the indices in the coming trading sessions. Investors can make use of the dip and accumulate AAPL for the long-term horizon. It remains the top tech giant with bases spread all over the world. Buying at its lows and selling when the company stabilizes could prove beneficial as it generates huge profits.
