Morgan Keegan & Co. lowered its rating Tuesday on Apple Inc.is stock to a Under Perform, down from a Market Perform rating. Coming a day after Thomas Weisel & Partners raising its own rating for AAPL to Overweight, Morgan Keegan & Co. said that decreased consumer spending in the tech space was going to hurt Apple, along with ongoing budgetary issues in U.S. public schools.
At issue is the economy, where the firm sees, "mounting evidence of broad-based weakness in consumer technology spending in the U.S. and Europe." The San Jose Business Journal reported that the firm expects to see pressure in Appleis education business due to budgetary constraints.
In contrast, Thomas Weisel & Partners upgraded Apple to Overweight on Monday, citing the companyis long-term growth opportunities. Thomas Weisel & partners also raised its price target on AAPL to US$195 per share, up from $188.
Apple traded lower in the mid-morning trading session on Tuesday at 155.754, down 0.136 (-0.09%) in moderate volume.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.