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NEW YORK (AP) — As consumers trek to Apple stores to try on the company's smartwatch for the first time, a Raymond James analyst has downgraded shares of the tech giant, saying its first product launch under CEO Tim Cook poses "more risk than reward."
Analyst Tavis McCourt says fiscal 2016 is shaping up to be difficult year for the company. While sales of the Apple Watch won't be a big part of the company's earnings for some time, McCourt says: "Early reviews on Apple Watch suggest it will fall far short of the 'insanely great' benchmark, at least in this first iteration." He says that could lead investors to worry that the company is going to struggle with launching new products.
Despite downgrading Apple shares to "Market Perform," McCourt has raised his profit and revenue forecasts for the company, saying iPhones are selling well in China and he expects Apple to increase its stock buyback.
Shares of Apple have climbed 69 percent over the last 12 months, reaching an all-time high of $133.60 in February. Apple is down today, trading around $126.
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