KeyBanc Downgrades Apple on Growth Concerns

Yahoo Finance ·

KeyBanc Downgrades Apple on Growth Concerns Faizan Farooque Tue, July 14, 2026 at 3:26 PM EDT 1 min read AAPL This article first appeared on GuruFocus . Apple ( AAPL , Financials ), the consumer technology company behind the iPhone, Mac , iPad and Apple Watch, was downgraded to Underweight by KeyBanc Capital Markets. Warning! GuruFocus has detected 7 Warning Sign with BAC. Is AAPL fairly valued? Test your thesis with our free DCF calculator. The firm set a $250 price target and said recent spending data points to softer demand. Its June tracking showed spending fell 2% from May, compared with an average 9% increase over the past three years. KeyBanc believes some of last year's demand was pulled forward as customers bought devices ahead of expected tariff changes. That boost may now be fading. The firm also sees pressure from higher iPhone prices, slower upgrade cycles and reduced carrier subsidies. Those trends could make it harder for Apple to meet Wall Street's current growth expectations. Services may not be immune. KeyBanc expects Services revenue to grow about 7% in fiscal 2027, well below the roughly 12% rate analysts currently expect. Valuation is another concern. Apple trades at about 35 times earnings, which KeyBanc views as difficult to justify if hardware and user growth continue to slow.

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KeyBanc has downgraded Apple due to growth concerns.

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KeyBanc notes that Apple's recent expenditure data indicates soft demand, with a 2% decline in spending in June compared to May.

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