Iphone sales put strain on Apple as ratings change across the board (02/01/2024)

Jan 2nd, 2024 – Surprisingly, portfolio holding Apple (AAPL) (0.6 units @183.96) performed poorly on Nasdaq today,  experiencing a decrease in price of around 3.6%, after Barclays analyst Tim Long classified it as  “Underweight”. The main reason behind such a negative rating assigned to the Cupertino based  company is represented by the Iphone 15 sales trend. In fact, it seems to be seriously negative worldwide,  with one of the most critical contexts represented by China, where government officials cannot use  Apple products anymore due to security reasons. In addition to this, analysts expect that the 16th model of the popular smartphone will experience the same issues, mainly because of the expected lack of innovative features and upgrades in it.  

The decision taken by portfolio holding Boeing (BA) (0.15 units @251.28) of inspecting its 737 Max  aircrafts due to some critical issues affecting the bolts of the various models was rapidly followed by the removal of the multinational corporation from Goldman Sachs conviction buy list. The main factor that had a huge influence on the decision taken by the US investment bank is represented by the great  difference between the historical profitability of the company and its most recent performances,  characterized by losses and decreasing revenues. So, it comes with no surprise that today BA’s stock price dropped by 3.41%.  

Citigroup (C) (+3.11%) just achieved an important result thanks to the recent Wells Fargo valuation. Its target stock price objective was increased from 60$ to 70$, reflecting the expectations according to which Citigroup  shares value will rise up to 100 $ in the next three years. The drastic reduction of its costs and the implementation of a complex strategic restructuring were the reasons for such positive forecasts by Wells Fargo analysts.

Author: Piero Foberti

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