Apple shares may not rise in the second half of this year due to its overvaluation and growing risks from China, which could derail the long-awaited launch of a new iPhone next week, according to JPMorgan, Bloomberg writes.
Analysts at the investment bank lowered their target price on the company’s stock from $235 to $230 for these reasons, saying China’s ban on iPhone use by government officials took place amid intensifying competition in Apple’s largest overseas market.
Even so, China’s plan for a broader ban on iPhone use by government and state-owned employees would not have a significant impact on Apple’s sales due to consumer preferences.
The company’s shares rose 1 percent on Friday after a two-day plunge that wiped out nearly $200 billion of its market value.