Apple Inc. (AAPL) shares are down 2.1% in premarket trading Tuesday after HSBC analyst Erwan Rambourg downgraded the stock to hold from buy, writing that it was "too late to sell, too early to buy" Apple shares, which have fallen 19% over the past three months. "Apple has to innovate to ensure that the installed hardware base doesn't shrink," wrote Rambourg, who suggested three "complementary strategies" for the company. One is "horizontal diversification and geographic expansion," as services like Apple Pay are growing fast but could benefit from more reach, in Rambourg's view. Another approach would be adding new services and applications in areas such as augmented reality that would drive hardware improvement and excite current iPhone users. Rambourg's final strategy is "pure innovation" in new realms like autonomous driving, health, and augmented-reality glasses. He lowered his price target to $200 from $205, writing of an "undemanding valuation" but limited "immediate catalysts." The shares are down 11% over the past month, while the Dow Jones Industrial Average has risen 2.2%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
December 04, 2018 08:24 ET (13:24 GMT)
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