Apple’s (AAPL) stock may be gaining traction ahead of Cupertino’s highly anticipated iPhone 6 launch, but one analyst thinks it’s time to close your longs while the getting’s good.
“We recommend taking profits in (Apple),” Pacific Crest Securities analyst Andy Hargreaves said [via CNBC] in a note Wednesday. “Unless next week’s event details massive incremental profit opportunities, we are likely to downgrade (Apple’s) rating.”
Apple is widely expected to unveil two new versions of its iPhone 6, a 4.7-inch model and a 5.5-inch model at a media event next Tuesday. Speculation has it the new phone will also offer a mobile payments platform. The tech giant is also expected to introduce a new smartwatch, which many presume to be called iWatch.
Hargreaves, who has a $100 price target on the stock, said he did not expect the iWatch or the payments platform to bring in significant new profits for the tech giant. He advised traders hold “some position” in the stock through next Tuesday’s event, though, in hopes of getting more specifics on what kind of revs the widely anticipated products can generate.
The shares of Apple fell more than 4% to $99.05 at 11:54 a.m. in New York. The stock is up 41.88 percent year-over-year and 23.56% year-to-date.