(Bloomberg) – Wall Street has not been so pessimistic about Apple Inc. for a long time.
Rosenblatt Securities downgraded the company to sell Monday, bringing the total number of bearish analysts up to five among the 57 ratings tracked by Bloomberg. That's the highest number of sales ratings the iPhone manufacturer has had since at least 1997, according to historical data prepared by Bloomberg.
The skepticism surrounding the company has accelerated in 2019, when all five of the sales classes come this year. Both New Street Research and HSBC lowered their stock ratings for sale in April, and in January, the number of companies with purchase ratings dropped below 50% for the first time since 2004.
The warning is largely driven by uncertainty surrounding demand for the company's critical iPhone line, with the trade war between the US and China seen as a major headwind. In January, Apple cut its outlook for the first time in almost two decades, mainly due to iPhone weakness. Apple's third quarter results are expected to come out on July 30.
According to data compiled by Bloomberg, over 60% of Apple's 2018 revenue was iPhone related, while 20% came from China, which is also a critical part of its supply chain. Last week, Citi wrote that Apple's China sales "could be cut half" due to "a less favorable image image desire."
Rosenblatt's downgrade came as analyst Jun Zhang expects the company "to face fundamental deterioration over the next six to twelve months" based on disappointing sales trends. The downgrade pushed the Apple stock down by as much as 1.9% Monday trading.
Yet, the sales equivalents are hardly a consensus show. A number of 23 companies recommend buying the stock, while another 21 have team ratings, according to data prepared by Bloomberg.
The news was not entirely negative for Apple on Monday, but as Wedbush wrote, it was "progressively more positive on global iPhone demand" for control in Asia. "We experienced a" small uptick "out of Apple vendors during our checks, though the overall demand for the handset remains challenging," writes analyst Daniel Ives. He confirmed his outperform ratings and $ 235 price goals.
(Updates stock exchange trading to the market open in the sixth section.)
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