KeyBanc views near-term risk/reward on Apple as 'slightly negative'
KeyBanc analyst Andy Hargreaves views the near-term risk/reward on Apple as "slightly negative." The analyst notes that there is "a perception of safety" in Apple and expects near-term results to match expectations. However, the valuation appears to require a re-acceleration in top-line growth that he does not anticipate, while leaving little room for error, he contends. Hargreaves believes this limits the potential for further multiple expansion, while exposing investors to risks associated with iPhone ASP declines, stagnating user growth, brand risk in China, regulatory risk around App Store, and the financial risk from potential tariffs.