On Thursday, current and prospective Apple investors received some bad news from Barclays. According to analyst Ben Reitzes, Apple is the new Microsoft in the sense that the stock is likely "range bound" for the near future.
As a result, he downgraded the stock from "overweight" to "equalweight," retaining his $570 price target. In short, the analyst doesn't expect to see shares of AAPL surge and retrace their way back to $700 any time soon.
Following the announcement, shares of Apple dipped more than $5, down to $531.
"Frankly, we just couldn’t quite bring ourselves to use smart watches or TVs as reasons to raise numbers – nor were we fully convinced that these products could move the needle like new categories did in the old days," says Reitzes. "As a result, we believe it is time to step aside, given a maturing smart phone market."
He says he's excited as a consumer for what Apple has in store, but as an investor, he doesn't see it doing much.
Source: Business Insider