Apple shares fall after two analysts slash their expectations for the stock

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Store shop assistants as Apple launches iPhone XS, iPhone XS Max, and iPhone XR sales in Russia. 

Shares of Apple fell on Thursday in premarket trading after two analysts cut the tech giant’s price target on weak iPhone demand going forward.

Purchase intention for iPhone “was down across the board” and most significantly in the U.S. and China, UBS analysts wrote in a note to clients late Wednesday, citing a survey. iPhone buying intent in the U.S. has been dialed back to a five-year low, same as iPhone 6S levels, and interest in China also hit a new low, the UBS survey showed.

UBS slashed Apple’s price target to $210 from $225, but maintained its buy rating.

“Investor expectations for this iPhone cycle are muted. Consensus estimate for iPhones in 2019 is for roughly 2 percent unit decline and about 1 percent revenue growth,” UBS analyst Timothy Arcuri wrote in a note.

Rosenblatt Securities also cut Apple’s 12-month price target to $165 from $200 on lower iPhone shipment estimates.

“We have lowered our iPhone shipment estimates for C1Q19 twice over the last two months,” Rosenblatt analyst Jun Zhang wrote in a note on Thursday. “Although we are at the low end of consensus iPhone estimates, we believe the street will continue to trim down their estimates.”

Rosenblatt reduced its earnings estimates on Apple for 2019. The firm is now more than 3 percent lower than the Wall Street consensus earnings estimate.

Apple shares were down 2.3 percent in premarket trading on Thursday adding their already 21 percent rout so far this quarter.