Wells Fargo Downgraded Apple From Outperform To Market Perform Based On Gross Margin Concerns
By DMO Affiliate
Wells Fargo's Apple analyst Maynard Um downgraded Apple from Outperform to Market Perform on Monday. Apple's stock was down $8 or about 1.4% to $553. While Um believes iPhone and iPad units and gross margin should be strong near-term he is concerned that it is already priced into the stock. Um's analysis has gross margins increasing by 225 basis points in the two quarters of a "S" iPhone model being introduced and then decreasing by the same points when a new form factor comes into play. A key swing factor will be discounting in overseas markets to gain a foothold or increased share.
|Wells Fargo Downgraded Apple From Outperform To Market Perform Based On Gross Margin Concerns|