D.A. Davidson downgrades Apple to 'neutral' as AI prospects dim

D.A. Davison downgrades stock rating of iPhone maker Apple AAPL.O to "neutral" from "buy"

Brokerage says that while it was initially optimistic about Apple's potential role in the AI ecosystem and the possibility of a major upgrade cycle, it has become clear that neither is likely to materialize in the near term

Shares of co flat at $227 premarket

On Tuesday, Apple CEO Tim Cook unveiled the ultra-slim iPhone Air, the biggest redesign in eight years, channeling Steve Jobs to revive a lineup that critics said was growing stale

Following a series of underwhelming product announcements, Apple is unlikely to make significant strides in AI in the near term- D.A. Davidson

Until the company reimagines its existing products or introduces compelling new ones, growth is likely to remain limited under the current trajectory, adds brokerage

Stock rated "buy" on avg; median PT is $245, per data compiled by LSEG

As of last close, AAPL has fallen ~9.4% this year