AFTER a very rare downgrade of the stock to sector weight from overweight, Pacific Crest Securities told clients to buy shares of Google Inc (NASDAQ: GOOG) parent Aphabet Inc (NASDAQ: GOOGL).
Why is Pacific Crest Securities downgrading Apple Inc (NASDAQ: AAPL) to the equivalent of what is a Hold rating ?
So, basically, they are saying that there is a lot of optimism around this upcoming iPhone 8 cycle, but they don’t see that the market has really priced in any risk in this cycle and that is either disappointing or there is not as much demand on as previous cycles or the changes are not as significant as many are anticipating.
It is important to note that, to some degree, a relative upgrade they see more upside in Alphabet than in Apple Inc, but notable particularly ahead of a very busy week for the company.
Today, the tech giant kicks off its Developers Conference which is a big day for Apple Inc.
What can we expect from this huge event? Any big news or headlines that could move the stock coming out of that?
According to market analysts, the Developers Conference is very important and that is why the timing of this downgrade is interesting because Apple Inc does tend to run up into its September iPhone announcement and so of course we’re into this summer season, pre- iPhone anticipation, and then of course this Developers Conference, so interesting timing; the disappointment wouldn’t happen during this anticipatory period.
But, market observers say, the Developers Conference is particularly interesting because they often really highlight software developments and that is something that investors and consumers are very interested in. But they might give some signs about what we can expect from the iPhone 8, on the software side in particular and, perhaps, some hardware announcements as well while there have been some reports that we might hear on the new Mac, or a new iPad, but that is less certain and definitely some update on the software side.