Apple could fall 20% as Watch disappoints: Analyst

An iPhone 6 Plus at an Apple store
Adrees Latif | Reuters
An iPhone 6 Plus at an Apple store

Apple shares could fall 20 percent as iPhone sales slow in the second half of this year and sales of the company's new Apple Watch fail to offset that decline, an analyst said in a note Thursday.

Abhey Lamba of Mizuho Securities downgraded the world's biggest company, whose shares rose almost 40 percent in 2014 to a record high, to "neutral" from "buy." The analyst's 12-month price target remains unchanged at $115, about $5 above Wednesday's closing price, but Lamba said "downside" for the stock could be in the mid-$80s.