Daiwa, a brokerage, reported on Friday that it had lowered its investment rating and target price for Swiss Technologies (2018.HK) because of concerns that Apple's pricing strategy for its new iPhone might affect sales.
Daiwa downgraded its investment rating from "buy" to "hold" and lowered its target price from HK$110 to HK$85, about 5% higher than current levels.
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Kylie Huang, a big analyst, pointed out in his report that the bank had expected a more affordable pricing strategy for the new iPhone to stimulate consumer demand, but two of the three new iPhones were priced higher than the bank expected, so it downgraded its sales forecast for the second half of this year from 95 million to 80 million.
"As a major supplier of the iPhone, Raytheon is expected to have a negative impact on the company's earnings in the second half of this year and next year." She said.
Based on a more conservative income and profit margin assumption, Raytheon's earnings forecasts for 2018-20 were revised down by 2-8%.

<>Tai ho lowers Rui technology rating and target price.

 

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