Analysts Are Downgrading These 5 Stocks

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01. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 131

DA Davidson analyst Tom Forte, on June 5, downgraded Apple Inc. (NASDAQ:AAPL) from Buy to Neutral on June 5 and set a price target of $185, down from $193. The reason behind the downgrade is Apple Inc. (NASDAQ:AAPL) recent announcement of its forthcoming augmented reality/virtual reality (AR/VR) headset called Vision Pro. According to the analyst, the launch of this new hardware product, slated for 2024 with a price tag of $3,499, is significant and could be Apple’s most important since the introduction of the iPhone in 2007. However, DA Davidson believes that the positive impact of the AR/VR product launch is already factored into the share price, leading to the downgrade. The firm also points out that Apple Inc. (NASDAQ:AAPL) faces notable challenges in consumer adoption of AR/VR hardware, which could limit its immediate impact on sales and profitability.

Silver Ring Value Partners made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q1 2023 investor letter:

“Exited the Apple Inc. (NASDAQ:AAPL) put options position, as I came to the conclusion that I was wrong about the degree to which the stock is overvalued. While I still believe it’s optimistically priced, the fundamentals over the last few years made me believe that my initial decision to buy the put options was wrong.”

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