Apple (AAPL) stock is down 19.8% year-to-date and continues to lag behind both the broader technology sector and the Magnificent Seven stocks. Despite this underperformance, Barclays’ top analyst Tim Long maintained his “Sell” rating on AAPL, with a price target of $173, implying 13.6% downside potential from current levels.
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Long is a five-star analyst on TipRanks. He ranks #165 out of the 9,646 analysts covered by TipRanks. Overall, Long boasts a success rate of 64% and an average return per rating of 14.4%. Notably, Long has maintained a Sell rating on Apple stock since January 2, 2024.
Why Is Barclays Bearish on AAPL Stock?
Long remains negative on AAPL stock because he believes that Apple’s iPhones are no longer experiencing the growth they once did. Additionally, he is worried that Apple’s Services segment is “very concentrated and at risk.” Most notably, the analyst believes that Apple’s other products have limited impact on the company’s stock price performance. To sum up, Long’s bearish view on Apple stock is based on the following three factors:
- iPhone sales are not experiencing significant growth
- Apple’s Services segment is highly concentrated and faces elevated risk
- Apple’s other products have only a minimal impact on AAPL’s stock value
The five-star analyst was also unimpressed by Apple’s recent annual Worldwide Developers Conference (WWDC). Long noted that the changes to Apple’s operating systems and the limited enhancements to Apple Intelligence will likely have little impact on Apple’s future growth prospects. Moreover, Apple faces looming tariff threats as it continues to shift its manufacturing hub to India, despite repeated warnings from President Trump.
Furthermore, Apple has indefinitely delayed the launch of its updated Siri version. These are the reasons Long believes consumers will not be motivated to upgrade to newer iPhone models this year.
Is Apple Stock a Good Buy?
Analysts remain divided on Apple’s long-term stock trajectory. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 13 Buys, eight Holds, and two Sell ratings. Also, the average Apple price target of $230.77 implies 15.2% upside potential from current levels.
