The iPhone cycle that drove Apple shares higher this year is near its end, according to one Wall Street firm.
Nomura Instinet lowered its rating for the smartphone maker’s shares to neutral from buy.
“We argue that the stock’s gains for the iPhone X supercycle are in the late innings. We believe unit growth, if not quite ASP growth, is well anticipated by consensus and a historically full multiple,” analyst Jeffrey Kvaal wrote in a note to clients Tuesday.
Apple shares fell 1.2 percent in Tuesday’s premarket session after the report.
The company is one of the market’s best-performing large-cap stocks so far this year, rallying 52 percent through Monday versus the S&P 500’s 20 percent gain.
The analyst reduced his price target for Apple shares to $175 from $185.
