Apple CEO Tim Cook speaks onstage throughout day 2 of Vox Media’s 2022 Code Conference in Beverly Hills, California.
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Shares of Apple have been down 4.5% on Thursday after Bank of America analysts delivered the inventory a rare downgrade.
The analysts lowered their ranking from purchase to impartial, additionally slicing its worth goal from $185 to $160 per share. They stated they anticipated “weaker consumer demand” over the subsequent yr and pointed to macroeconomic challenges.
The broader market was additionally adverse on Thursday, however Apple’s fall was nonetheless larger than main indices just like the S&P 500, which was down 2.5% Thursday morning.
The downgrade got here on the heels of a Bloomberg report Wednesday that stated Apple had informed some suppliers to desert plans to ramp up manufacturing for its new iPhone 14 after failing to see as excessive demand as anticipated. That additionally put strain on Apple’s inventory.
Another agency disagreed with the BofA ranking on Thursday, nonetheless. Rosenblatt Securities upgraded its ranking on Apple from impartial to purchase and raised its worth goal from $189 to $160, implying a 25% rally from present ranges. It made the decision after its survey of over 1,000 U.S. adults confirmed robust demand for even the pricier new Apple merchandise.
Rosenblatt solid doubt on the manufacturing report, writing that there is “a recent history of comparable reports proving to be misleading when actuals come out.”
CNBC’s Michael bloom contributed to this report.
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WATCH: Apple shares transfer decrease as BofA downgrades inventory