S&P downgrades Apple shares to "Hold' on valuationCiting risk-reward considerations, analysts for Standard and Poor's Equity Research cut their rating on shares of Apple Inc. to "Hold" early Monday.
"We believe Apple's fundamentals remain strong on market-share gains in desktops and laptops, success with digital-media players and software, and notable inroads in the smartphone category," wrote analyst Scott Kessler.
As a result of these successes, the analyst said he believes Apple should trade at a greater premium to the price/earnings-to-growth rate of the S&P 500 Technology Sector. He therefore raised his 12-month target price on shares of the Cupertino-based company to $155 from $135.
Simultaniously, however, Kessler hedged long-term bets on the stock by cutting his rating to a "Hold."
"We think our downgrade is warranted by risk-reward considerations, especially with expectations high and Apple scheduled to report June-Q results on Wednesday," he wrote.
In late May, Standard & Poor's announced that Apple had joined its prestigious S&P 100 index of big blue-chip companies.
On Topic: General
- Munster: Apple likely to fold VR into 'Made for iPhone' program within 2 years
- Apple's Tim Cook, Eddy Cue attend Super Bowl 50 amid talks of NFL streaming deal
- Apple drops third betas of iOS 9.3, watchOS 2.2, and tvOS 9.2 [u]
- Indian government ready to push through approval of local Apple Stores - report
- Review: Parrot's Bebop Drone is lightweight, aimed at casual hobbyists