Apple shares fall as analysts downgrade over valuation issues and growth concerns

Apple ( NASDAQ:AAPL ) shares were under pressure on Tuesday after investment firm MoffettNathanson downgraded the stock from “neutral,” citing problems with the company’s high valuation. Premarket trading saw a one percent drop in shares after the release. Analyst Craig Moffett praised Apple’s excellent management team and creative abilities, but expressed concerns that the company’s price only reflected favorable results. “Apple is a truly great company and they are purveyors of truly great products,” Moffett wrote in a note to clients. With Apple’s lowest growth rate among the “Magnificent 7,” a group consisting of Tesla (TSLA), Amazon (NASDAQ) :AMZN), Meta Platforms (NASDAQ:META), Alphabet (GOOG,GOOGL), Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT), Moffett set a $188 price target on Apple shares, but notes that the company has the largest earnings multiple. Moffett warned that Apple’s valuation is difficult and that its growth pattern does not justify the valuation premium. “Against this difficult backdrop, Apple’s stock outlook is unfortunately pretty grim,” he noted.

This article first appeared on GuruFocus.