Apple share prices rose Wednesday, while Pacific Crest Securities downgraded the stock, citing stagnant iPhone growth and a "lack of compelling features" on the new Apple Watch.
A day after its big announcement, Apple's stock price had risen nearly 2½ percent by Wednesday afternoon. (Click here for the latest price.)
Pacific Crest said it had downgraded Apple from outperform to perform, suggesting the new products unveiled Tuesday did not have enough "potential for upside estimates."
"We continue to believe Apple's strong customer loyalty will protect margins and cash flow, limiting downside in the shares," Pac Crest said in a note. "However, unless Apple Watch proves to be a surprisingly large mass-market hit, we believe multiple contraction will offset earnings growth over the next year and prevent significant stock appreciation."