Deutsche Bank analyst Sherri Scribner lowered her target price for Apple's stock from US$105 to $102 because she doesn't see any new product surprises coming from the company. She thinks the company could have trouble beating investor expectations for iPhone sales, and that there won't be any new product announcements before the end of the year.
Deutsche Bank analysts thinks Apple is out of surprises for this year
Ms. Scribner lowered her target price for Apple's stock because she thinks it is now range bound for trading. She told investors,
At its September 9 event, Apple introduced all of the new products and features which had been rumored for a C2H-14 introduction, including new larger screen iPhones, Apple Pay and Apple Watch. Through year-end, we may get a modest refresh to the iPad or to Macs, but we do not expect another significant product introduction on par with the September event to happen this year. While we believe Apple Watch has the potential to be a significant product, the product will not be available until 2015. Given the lack of major new products, we see limited catalysts to the shares through year-end.
Apple introduced the iPhone 6, iPhone 6 Plus, and Apple Watch at its September 9 media event. The new iPhone models hit stores on September 19, but the Apple Watch won't ship until some time in 2015.
The iPad was last updated in October a year ago, so we'll likely see a refresh in time for the holiday buying season, but major changes to the product line aren't expected this year.
The iPhone 6 and iPhone 6 Plus are proving to be popular, but Ms. Scribner questions whether or not the company can top what investors expect from sales figures.
"Apple's shares are up 25 percent year-to-date and near all-time highs, driven by positive expectations for iPhone and Sept's new product announcements," she said. "We believe investor expectations for iPhone sales are currently high, making it more difficult for Apple to outperform expectations."
Ms. Scribner also downgraded her "Hold" rating to "Buy" for Apple's stock to go along with her new $102 target price. Apple is currently trading at $100.06, up 0.16 (0.16%).