KeyBanc downgrades Apple to Underweight with $250 price target

KeyBanc cut Apple to Underweight from Sector Weight with a $250 price target, about 21% below the prior Monday close. Analyst Brandon Nispel pointed to weaker hardware demand, slower upgrade cycles, lower carrier subsidies and a rich valuation. The firm expects Services growth to slow to about 7% in fiscal 2027 against a consensus near 12%, and shares fell roughly 1% to 1.7% on the day.

• Rating cut to Underweight from Sector Weight; target $250
• Apple trades at about 36x forward earnings, per the note
• KeyBanc sees fiscal 2027 Services growth near 7% vs consensus near 12%
• Shares fell roughly 1% to 1.7% on the day