Investment firm Jefferies downgraded Apple due to inflated expectations for the iPhone 18 and foldable iPhone
By ForGeeks
Investment firm Jefferies downgraded Apple from «Hold» to «Underperform», expressing concern over inflated forecasts for future iPhone models, including the first foldable iPhone expected next year. The new price target on the company’s shares is set at $205.16, versus the previous $205.82.
After lowering the forecast, Apple shares opened Friday down and were down $3.18, but eventually closed at $258.02 — just two dollars from the all-time high ($260.10).
Jefferies notes that the strong launch of the iPhone 17, which gets a ProMotion display with 120Hz and an Always-on screen even in the base model, is already «embedded» in the stock price. Analysts believe the market is overly optimistic about demand for the upcoming iPhone 18 and iPhone 18 Fold.
The firm said that without truly innovative solutions, sustained demand growth against a backdrop of lower prices is impossible and could lead to shrinking margins. Meanwhile, the ultra-thin iPhone Air has so far failed to generate interest from buyers, which analysts believe casts doubt on the foldable model’s forecasts.
The iPhone Air is the latest in a long line of iPhone 18 and iPhone 18 Fold models.
Particularly troubling is the possible price of the foldable iPhone 18 Fold — around $2,000, the same as the starting price of the Samsung Galaxy Z Fold 7. Jefferies believes this is a ceiling above which consumers are not willing to pay, which could limit sales of the device.
And that’s a ceiling that consumers are not willing to pay, which could limit sales of the device.
In comparison, analysts at Seaport Research Partners raised their outlook on Apple this week, issuing a «Buy» rating with a target price of $310 — nearly 20 percent above current levels.
According to FactSet, of the 50 investment houses tracked, 31 of them recommend buying Apple stock, 17 advise «hold» and only two, including Jefferies, advise selling.
Jefferies reminds us of the classic Wall Street principle «buy on rumors, sell on facts» rumors of new products fuel stock price gains, but once they are officially announced, stocks often go into a correction.
