UBS analysts downgraded Apple (NASDAQ:AAPL) to Neutral from Buy, while increasing their price target on the shares to $190 from $180, noting they believe that the company’s growth prospects are being weighed down by demand pressure in its key markets.
The analysts highlighted negative demand trends in Apple’s core territories. Sell-through in the US, China, and Europe experienced a decline of 7.5% in the March quarter, while the rest of the world saw a decrease of 2.4%.
The analysts also referred to the UBS Evidence Lab 2Q23 Smartphones Survey, which reveals that 12-month iPhone forward purchase intent is flat to slightly down versus six months ago. Specifically, purchase intent for the next 12 months declined by 200 basis points in the UK, 100 basis points in China, and 100 basis points in Japan.