Apple could see a significant decline in sales of its flagship iPhone, and investors should get out before the stock tumbles, according to a note from New Street Research.
The tech giant reported nearly $48 billion in iPhone sales for its fiscal second quarter, helping the company blow past analyst estimates for earnings and revenue. Several analysts have said the iPhone 12 was part of a new supercycle for Apple.
However, New Street analyst Pierre Ferragu downgraded the stock to sell from neutral, saying in a note to clients on Friday that the strong sales for the iPhone 12 seem unsustainable.
New Street is only the second firm with a sell rating on Apple, according to TipRanks.com. The stock has 18 buy ratings and five hold ratings, according to TipRanks, making it one of the most loved securities on Wall Street. Wolfe Research is the only other firm with a sell rating. None of the major Wall Street banks calls it a sell.