Jefferies downgrades Apple to sell, sees 20% drop from here
Published Fri, Oct 3 2025•8:33 AM EDT|Updated 11 Min Ago
Liz Napolitano
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Apple shares are likely to slump as Wall Street’s expectations for the company’s next iPhone — potentially a foldable — have become too lofty, according to Jefferies. The investment firm downgraded the tech giant to underperform, a sell-equivalent rating, from hold. It lowered its price target for shares to $205.16 from $205.82, implying 20% downside. “More positive sales momentum has inflated expectations on the replacement cycle and prospects of the 18 Fold,” analyst Edison Lee said Friday in a note to clients. AAPL YTD mountain AAPL year to date Better-than-expected demand for the iPhone 17, partly due to a price cut on its base model, has fueled the Street’s expectations that consumer demand will also be strong for Apple’s first foldable phone, according to the analyst. However, Lee cautioned that the market for the foldable device will likely be limited, so sales of the device could be underwhelming relative to analyst expectations. “Review and reception seems strong, but even so industry expectations for its annual vol is no more than 3m units,” he wrote. He added that, “without innovative features, price-driven replacement cycle may not be sustainable (could result in margin pressure). The thin form factor is fact is not popular, making any bullish view on fordable risky.” Jefferies call goes against consensus on the Street. Thirty-three of the 51 analysts that cover Apple have a strong buy or buy on shares, and just two analysts have assigned the stock a sell rating or the equivalent, per LSEG. Apple was down 0.8% in premarket trading on Friday. The company’s shares have risen 14% over the past year.
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