Bank of American downgrades Apple to “neutral,” citing multiple risks

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Despite breaking expectations in its Q3 earnings call, with all-around positive numbers and a bullish outlook on the next quarter, Bank of America has downgraded Apple to neutral.

As CNBC reports, the bank is saying that “risk-reward is more balanced at this level,” and re-emphasized their calls for risk evaluation from June and added that since the stock has seen sudden gains.

Additional factors they note is a lower impact from Apple’s share buybacks, a potential risk of a higher tax rate in November due to the upcoming election, COVID19, lower services growth, and lower growth margin.

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Sami started falling in love with Apple in 2010 with the iPhone 4S. As a registered developer, he deeply admires the world of Apple. Sami is an aspiring journalist, writer, and actor. He also has devoted his life to sharing his passion and knowledge with others around the world.