Morgan Stanley slashed its price target on Apple to $236 a share from $253 a share on Friday, citing a weak market in China for iPhones because people are taking increasingly more time to replace their old phones.
Apple shares fell 0.7 percent in premarket trading. The stock is firmly in a bear market, down more than 25 percent from recent highs. Wall Street defines a bear market as a fall of more than 20 percent from a stock’s 52-week high.
Morgan Stanley joins a number of Wall Street firms cutting expectations for Apple’s stock: Goldman Sachs (on the lackluster international reception of the iPhone XR), Guggenheim Partners (on declining iPhone unit sales next year), UBS (on warnings from suppliers and weak overseas sales), HSBC (on over-dependence of a single product) and Rosenblatt Securites (on a lowered iPhone shipment estimates).