Despite better-than-expected quarterly earnings and an increased dividend, Apple has an uphill climb for the foreseeable future, Jeffries analyst Peter Misek said Tuesday.
"Frankly, I think the surprise was the buyback coming on the earnings call," he said, adding that he had expected such an announcement to be made later.
Apple reported fiscal second-quarter earnings of $10.09 a share on revenue of $43.60 billion versus $12.30 a share on $39.19 billion a year earlier.
(Read More: Apple Earnings Beat, Company Hikes Dividend)
On CNBC's "Fast Money," Misek said that Apple's stock price was heading lower due to three factors: Margin pressure, lower demand for its products and issues with product-cycle execution.
Samsung's next-generation smartphone appeared it was "going to take meaningful share," meaning that Apple would have to play catch-up for the rest of the year and possible into June 2014.
"Walk me through why we should like a stock that for one year has basically got a product that doesn't compete at the high end of the market," he added.
Misek has a price target of $420 per share and a "hold" rating on Apple stock.
"We constantly reevaluate every week," he said. "Right now the data's pointing lower, and so we're going to stick to our guns on that side."
Trader disclosure: On April 23, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long YUM; Tim Seymour is short FCX; Keith McCullough is long SBUX; Brian Kelly is long TREASURIES; Brian Kelly is long GILTS; Brian Kelly is long BUNDS; Brian Kelly is short S&P; Brian Kelly is short DAX; Brian Kelly is short CAC40; Brian Kelly is short OIL;
For Peter Misek
Jefferies Group LLC makes a market in the securities or ADRs of Apple Inc.. I, Peter Misek, CFA, CPA, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.