For years, Apple (NASDAQ: AAPL) stock has enjoyed widespread popularity among both individual and institutional investors. Analysts have generally maintained a bullish outlook on the tech giant’s shares throughout its recent history.
Nevertheless, there are always dissenting voices amidst prevailing sentiments, and one such contrarian has recently reiterated his bearish stance on Apple stock in a new research note. Could his perspective hold merit?
A bear in a field packed with bulls
The solitary Apple bear in question is Thiago Kapulskis from the Brazilian financial services firm Itau-BBA. On Monday, Kapulskis reaffirmed his negative outlook on Apple by maintaining an underperform (sell) rating, accompanied by a price target of $162 per share. This suggests a potential 4.3% decline over the next 12 months compared to the current share price.
Kapulskis’ updated analysis coincided with the release of the latest smartphone data from tech sector research firm IDC. Unfortunately for Apple, the report delivered unfavorable news, indicating a roughly 10% year-over-year decline in iPhone shipments in the first quarter. Adding to Apple’s woes, the company relinquished its position as the world’s top smartphone seller, slipping to second place behind its archrival, Samsung.
In his assessment, Kapulskis remarked, “this is a demonstration that momentum remains weak for Apple.”
More than just a phone maker
However, the Itau-BBA analyst also highlighted in the same note that the IDC data underscores the importance for Apple to develop and market an iPhone equipped with meaningful artificial intelligence (AI) features.
If any company possesses the capability to effectively leverage AI in a device, it is Apple. Despite potential setbacks in the handset sector, it’s worth noting that Apple transcends the iPhone alone – its services revenue has exhibited robust growth, and it has shown strength in various other product segments as well. As a long-term shareholder, I remain optimistic about Apple’s prospects, undeterred by the recent decline in smartphone sales. I continue to have confidence in Apple’s future.
