DA Davidson Downgrades Apple (AAPL) to Neutral

DA Davidson analyst Gil Luria downgraded Apple (NASDAQ: AAPL) from Buy to Neutral with a price target of $250.00.

The analyst comments "While we were initially excited about the prospects of Apple's role in the AI ecosystem and potential major upgrade cycle, it has become clear to us that neither of those are likely to come to fruition in the near-term. Following recent product announcements that have left us uninspired, we believe that Apple may not significantly leverage AI anytime soon. Until they can redefine their current products or develop compelling new ones, we believe growth will remain constrained under the status quo. Thus, we are downgrading Apple to NEUTRAL while maintaining our $250 price target. We have been unimpressed by Apple's product strategy over the past year. While we don't question the utility of the products, Apple has brought lackluster innovation to their core lineup, starting with the iPhone. Both the iPhone 16 family, and the recent announcement of the iPhone 17 and iPhone Air leave us questioning whether they are compelling enough to warrant any meaningful upgrade cycle. And though we were excited about the introduction of the Vision Pro headset, it's become abundantly clear that it is a niche product for a narrow-set of customers. Even a foldable iPhone, which we expect to be announced next year, may not be a compelling enough of a reason for the average user to go out of their way to upgrade, thus we are left unimpressed until the company can either truly innovate on their core lineup or develop a new product category to accelerate growth"

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Shares of Apple closed at $226.79 yesterday.

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