On March 21, Apple (AAPL) received ratings upgrade from two firms. In the previous part of this series, we looked at one of these upgrades from Needham & Company, which raised its price target to $ 225 from $180. At 1:20 PM ET, the stock was trading at 194.73.

Apple: Investors Should Be Cautious despite Recent Upgrades?

Wedbush upgrades Apple stock

Wedbush Securities’ equity research Managing Director Daniel Ives upgraded raised his price target on Apple to $215 from $200. Ives has an “outperform” ratings for Apple stock, and he believes that its announcements during the March 25 event could just be the “tip of the iceberg,” which could drive growth in the company’s services segment.

As of March 20, AAPL made up about 10.17% and 3.68% of the Invesco QQQ Trust’s (QQQ) and SPDR S&P 500 ETF’s (SPY) total portfolios, respectively.

Investors should be cautious

Despite these multiple upgrades on Apple stock, remember that Apple is very likely to continue facing challenges in the Chinese market in the near term. Overall, most of the negative factors that triggered a sell-off in Apple stock in the fourth still haven’t changed much.

In February 2019, the “Oracle of Omaha,” Warren Buffett, during an interview with CNBC, indicated that he finds Apple stock expensive. He said, “If it were cheaper, we’d be buying it. We aren’t buying it here.”

Also, a couple of days ago, Market Realist CEO JP Gravitt pointed out that Apple’s valuation multiples seem expensive. Read his full article, You Really Want To Be Buying Apple Now?

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