Pacific Crest says don't expect year-end Apple rally, seeing weaker-than-expected iPhone 7 demand

Pacific Crest says lower-than-expected iPhone 7 demand and profit margin concerns may limit Apple share price appreciation in the coming months.

"Demand and supply checks suggest the iPhone 7 cycle is OK, but not great," analyst Andy Hargreaves wrote in a note to clients Sunday. "We see greater potential for upside through 2017 as detail about the next iPhone cycle may help address gross margin risks or new products could emerge."