Apple stock gets rare bearish rating, Key Banc says demand and valuation are concerns

Apple stock gets rare bearish rating, Key Banc says demand and valuation are concerns.

Apple received a rare bear rating, with KeyBanc Capital Markets downgrading the stock to underweight, citing concerns about demand and valuation.

Brandon Nispel, who previously had a "hold" rating on Apple stock, said the stock's valuation gap relative to the broader market "doesn't make sense." Apple stock trades at more than 33 times forward earnings, well above the 10-year average of 23 times and higher than the Nasdaq 100's 22.8 times. "We see U.S.

carriers reducing device subsidies and slowing upgrades, so the international market may need to bear more growth pressure. In a rising price environment, this will become difficult, and we believe the consensus estimate of 8% iPhone growth in 2027 is too aggressive," Nispel wrote in a report on July 13.

The downgrade further illustrates that Apple is one of the least favored mega-cap technology stocks. Even so, the equivalent of a "sell" rating on Apple is considered rare. Currently, only 7% of institutions, including KeyBanc, have a bearish rating.

Apple closed at $317.31 on Monday, roughly in line with its $319 price target, indicating analysts expect little upside for the stock over the next 12 months. KeyBanc's target price is $250, which means there is more than 20% downside from Monday's closing price. (

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