Apple gets rare downgrade because analyst believes iPhone cycle is 'in the late innings'
- Nomura Instinet lowers its rating for Apple shares to neutral, citing the company's current high valuation versus previous iPhone cycles.
- "The stock's gains for the iPhone X supercycle are in the late innings," the firm says.
- The last time the stock was downgraded was by Mizuho Securities on June 11. Apple shares are up 18 percent since then.
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 Apple shares to neutral from buy, citing the company's high valuation compared with previous iPhone cycles.
"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 1.1 percent in early trading Tuesday after the report.