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Apple Shares Fall After Mizuho Downgrade

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                Apple Shares Fall After Mizuho Downgrade

Apple shares added to last week's drop on Monday to lead a market downturn as tech, still the best performing S&P 500 sector this year, succumbed under its own weight.

Mizuho Securities cut its rating on Apple to "neutral" from "buy" on Monday, saying the stock had outperformed this year and that the "upcoming product cycle is fully captured at current levels."

Apple shares, down 2.4 percent on Monday, are up about 26 percent so far in 2017.

Mizuho Securities cut its rating on the iPhone maker to "neutral" from "buy," and reduced its price target to $150 from $160 per share.

"The stock has meaningfully outperformed on a year-to-date basis and we believe enthusiasm around the upcoming product cycle is fully captured at current levels, with limited upside to estimates from here on out," said analyst Abhey Lamba.

Last week, Pacific Crest Securities lowered its rating on the stock to "sector weight."

Of the 46 analysts covering Apple, 11 now have a hold rating, according to Thomson Reuters data. There is one "strong sell" rating on the stock and the remainder are "buy" or higher. The median price target of $160 is up from $145 three months ago.

Despite the recent decline, Apple shares are still up more than 23 percent for the year. The stock has added about 185 points to the Dow's climb this year, behind only Boeing, McDonald's and 3M Co.

Tech shares had come under heavy pressure on Friday, as the S&P technology sector dropped 2.7 percent and were down more than 2 percent on Monday, to put the sector on track for its worst two-day performance in almost a year.

Apple slumped on Friday after Bloomberg News reported that iPhones launched later this year will use modem chips with slower download speeds than some rival smartphones.

Reuters reported on Monday that Apple and computing giant Dell Inc, will join a Foxconn-led consortium bidding for Toshiba Corp,'s highly prized chip unit.

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