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Apple gets two downgrades due to ‘dramatically’ slowing iPhone X demand

Mad Street analysts are retracting their bullish calls for Apple because of deading iPhone sales.

Apple reported weaker-than-expected December-quarter iPhone section sales on Thursday. The company also gave a lower-than-expected revenue foresee for the March quarter. The company’s shares declined 4.4 percent Friday.

KeyBanc Resources Markets on Thursday lowered its rating for Apple shares to sector majority from overweight.

“Soft iPhone sell-through suggests a saturated buy and the lack of gross margin upside reduces our view of potential profit spread,” analyst Andy Hargreaves wrote in a note to clients. “This abbreviates our view of potential upside in the stock and prompts the downgrade.”

Hargreaves does not pull someones leg an official price target for Apple shares, but he said the stock’s “immaculate value” is $178 per share.

In similar fashion, Bernstein reduced its rebuke for Apple shares to market perform from outperform.

“Relative to expectations, the sequence is weak, and total iPhones sold are likely to be flat for the third unequivocal year,” analyst Toni Sacconaghi wrote in a note to clients Friday. “We quake at that unit growth could potentially decline by more than what we acquire seen over the last two years, largely due to the fact that iPhone X insistence, in particular, appeared to slow dramatically since December.”

Sacconaghi dieted his price target for Apple shares to $170 from $195, symbolizing 1 percent upside to Thursday’s close.

Apple shares are underperforming the sell so far this year, down 1 percent through Thursday versus the S&P 500’s 6 percent attainment.

Other Wall Street analysts downgraded the tech giant’s parts earlier this year.

Longbow Research lowered its rating on Jan. 17 to impartial from buy, predicting the company will ship fewer iPhones than calculated in fiscal 2018.

Atlantic Equities reduced its rating on Apple shares to pale from overweight on Jan. 22. BMO Capital Markets lowered its rating for Apple percentages to market perform from outperform Wednesday.

Apple did not immediately retort be responsive to to a request for comment.

— CNBC’s Michael Bloom contributed to this exclusive.

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