Apple, Inc. (NASDAQ: AAPL) shares fell on Tuesday after Nomura Instinet downgraded its rating for the iPhone maker.
Nomura Instinet analyst Jeffrey Kvaal lowered its rating for Apple from Buy to Neutral. He also lowered his price target for Apple shares to $175 from $185. H
"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, according to CNBC.
Apple shares fell 1.22 percent to $174.28 during Tuesday’s trading session. The stock was up over 50 percent this year, outperforming S&P 500 index’s nearly 20 percent gains. Apple’s shares just hit a new all-time high of $177.20 on Monday. The company now has market cap of about 895 billion.
"Apple is certainly not the same company as it was five or even three years ago. The growth in its services business is a particularly notable departure though hardly the only one," he wrote. "We do believe Apple's improvements merit a richer multiple than in prior years, though marginally so. We do not consider any of these sufficient, either individually or in aggregate, to flout the historical precedent."