Apple shares drop after Mizuho downgrade, the second ratings cut in a week
For the second time in a week, Apple shares were stung by a broker downgrade on Monday, sending the stock lower to keep the tech sector under pressure for a second straight session.
Apple shares were down 3.6 percent to $143.59, the biggest drag on each of the three major Wall Street indexes.
Apple slumped on Friday after Bloomberg News reported that iPhones launched later this year will use modem chips with slower download speeds than some rival smartphones.
Reuters reported Apple and computing giant Dell Inc will join a Foxconn-led consortium bidding for Toshiba Corp’s highly prized chip unit.
Mizuho Securities cut its rating on the iPhone maker to neutral from buy, and reduced its price target to $150 from $160 per share. Last week, Pacific Crest Securities lowered its rating on the stock to “sector weight.”
Of the 46 analysts covering Apple, 11 now have a hold rating, according to Thomson Reuters data. There is one strong sell rating on the stock and the remainder are buy or higher. The median price target of $160 is up from $145 three months ago.
Despite the recent decline, Apple shares are still up more than 23 percent for the year. The stock has added about 185 points to the Dow’s climb this year, behind only Boeing, McDonald’s .MCD.N and 3M Co.
Tech shares had come under heavy pressure on Friday, as the S&P technology sector .SPLRCT dropped 2.7 percent and were down more than 2 percent on Monday, to put the sector on track for its worst two-day performance in almost a year.
Source : Reuters