Apple shares fall following rare Bank of America downgrade

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Apple shares fall following rare Bank of America downgrade
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Apple shares fell 4.9% on Thursday after Bank of America analysts gave the stock a rare downgrade.

Analysts lowered their buy rating to neutral, also reducing its price target from $185 to $160 per share. They said they anticipated “weaker consumer demand” over the next year and pointed to macroeconomic challenges.

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Small Research Firm Disagrees With Bank Of America Call, Upgrades Apple, Predicts 25% Hike

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Bank Of America Downgrades Apple, Says Consumer Weakness Will End Stock Outperformance

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Bank of America downgrades Apple, says consumer weakness will end stock outperformance

The broader market was also negative on Thursday, but Apple’s fall was still greater than that of major indexes like the S&P 500, which fell 2.1% on Thursday.

The downgrade came on the heels of a Bloomberg report on Wednesday that Apple had told some suppliers to scrap plans to ramp up production of its new iPhone 14 after failing to see demand as high as expected. It also put pressure on Apple shares.

A second company, however, disagreed with the BofA rating. Rosenblatt Securities upgraded its rating on Apple from neutral to buy and raised its price target to $189 from $160, implying a 25% upside from current levels. He made the call after his survey of more than 1,000 American adults showed strong demand for even the most expensive new Apple products.

Rosenblatt questioned the production report, writing that there is “a recent history of comparable reports proving misleading when actual numbers are released.”

– CNBC’s Michael Bloom contributed to this report.

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