Apple shares fall the most in three weeks on Monday, Atlantic Equities downgrades the stock due to weaker second-quarter sales expectations

January 23, 2018 8:43 am

Apple Inc (AAPL) was reportedly downgraded to “Neutral” from “Overweight” by Atlantic Equities, as the firm cited expectations of lower-than-anticipated sales during the second quarter. Atlantic Equities also reaffirmed its price target for the stock at $190.

Apple shares closed lower for a second consecutive trading session on Monday. It has also been the steepest daily loss since December 29th. The stock went down 0.82% ($1.46) to $177.00, after touching an intraday low at $176.70, or a price level not seen since January 17th ($175.07).

In the week ended on January 21st the shares of the technological company added 0.77% to their market value compared to a week ago, which marked a third consecutive period of gains.

However, due to recent losses, the stock has pared its advance to 4.59% so far during the current month, following a 1.52% slump in December. The latter has been the first drop out of three months.

For the entire past year, the shares of the NASDAQ-listed tech company rose 46.11% following another 10.03% surge in 2016.

Analyst James Cordwell said that because of “signs that an iPhone demand is starting to soften, limited visibility into the potential for future iPhone cycles and emerging challenges to the smart phone’s dominance at the centre of consumer technology, we believe the stock’s multiple will compress, limiting upside potential”.

The downgrade by Atlantic Equities followed another such decision by Longbow Research last week. Longbow downgraded Apple to “Neutral” from “Buy”, citing weaker iPhone sales expectations.

Longbow analyst Shawn Harrison revised down his full-year 2018 iPhone sales forecast to 233 million units from 248 million units previously. In comparison, the median analyst estimate points to 239 million units shipped.

According to CNN Money, the 31 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $195.00, with a high estimate of $215.00 and a low estimate of $152.00. The median estimate is a 10.17% surge compared to the closing price of $177.00 on January 22nd.

The same media also reported that 25 out of 37 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 7 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Apple stock are presented as follows:

R1 – $177.10
R2 – $177.19
R3 (Range Resistance – Sell) – $177.29
R4 (Long Breakout) – $177.58
R5 (Breakout Target 1) – $177.91
R6 (Breakout Target 2) – $178.05

S1 – $176.90
S2 – $176.81
S3 (Range Support – Buy) – $176.71
S4 (Short Breakout) – $176.42
S5 (Breakout Target 1) – $176.09
S6 (Breakout Target 2) – $175.95

By using the traditional method of calculation, the weekly levels of importance for Apple Inc (AAPL) are presented as follows:

Central Pivot Point – $177.88
R1 – $180.68
R2 – $182.91
R3 – $185.71
R4 – $188.52

S1 – $175.65
S2 – $172.85
S3 – $170.62
S4 – $168.40

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