A note of caution has been introduced into the conversation surrounding Apple’s stock by analysts at Raymond James. The investment bank has shifted its rating on the tech giant to “Market Perform,” a move that tempers optimism despite the company’s continued strong fundamental performance. The central concern is a valuation that appears to offer limited upside potential.
Valuation Metrics Under the Microscope
The downgrade, issued by analyst Melissa Fairbanks, centers on Apple’s current price-to-earnings (P/E) multiple. The equity is presently trading at approximately 31 times the earnings forecast for fiscal year 2027. In her research note, Fairbanks characterized this level as fair but fully valued, stating, “The strong fundamentals and improved product cycles are already reflected in the share price.”
This reassessment coincides with a key leadership transition within Apple’s finance department. Effective January 1, Ben Borders assumed the role of Principal Accounting Officer from Chris Kondo. This change occurs just ahead of the company’s upcoming quarterly earnings release.
Should investors sell immediately? Or is it worth buying Apple?
Growth Expectations and Market Context
Raymond James has also moderated its near-term outlook for the iPhone. The firm now projects only a 3 percent increase in iPhone shipments for 2026, signaling an expectation that growth dynamics are normalizing at a high level rather than accelerating into a predicted “super-cycle.”
Apple’s market capitalization continues to hover near the $4 trillion threshold, intensifying the debate over its valuation. Following substantial share price gains in late 2025, investors are increasingly questioning how much further appreciation is plausible at current multiples.
All eyes are now on the financial results for the first quarter of fiscal 2026, scheduled for release on January 29. Consensus analyst estimates point to revenue of about $138.2 billion and earnings per share of $2.67. According to the prevailing analyst view, a significant outperformance against these targets would likely be necessary to alter the skeptical stance on the stock’s present valuation.
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