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D.A. Davidson is moving to the sidelines on Apple after the company’s latest products left it “unimpressed.” The investment firm downgraded the iPhone maker to neutral from buy, after Apple this week unveiled its latest line of iPhones and other products. Analyst Gil Luria maintained his $250 price target, which implies 10% upside from Apple’s Wednesday close. Luria said he was disappointed in Apple’s product strategy over the past year. Until the company can redefine their current offerings or develop compelling new ones, Luria expects Apple’s growth to remain stagnant. “While we don’t question the utility of the products, Apple has brought lackluster innovation to their core lineup, starting with the iPhone,” he wrote. “Even a foldable iPhone, which we expect to be announced next year, may not be a compelling enough of a reason for the average user to go out of their way to upgrade, thus we are left unimpressed until the company can either truly innovate on their core lineup or develop a new product category to accelerate growth.” The lack of innovation has also resulted in the company losing some footing against increasing overseas competition, with Luria pointing to “a handful of just-as-good if not better alternatives.” This is especially true for China, the analyst added. Luria pointed to Apple’s lack of a role in the artificial intelligence ecosystem as another disappointment. “Following recent product announcements that have left us uninspired, we believe that Apple may not significantly leverage AI anytime soon,” he added. “It is clear that the company was either caught off-guard by AI or is genuinely facing innovator’s dilemma and cannot innovate on their current products.” AAPL YTD mountain AAPL YTD chart The “Magnificent Seven” stock has slipped 9% this year, while other group members such as Nvidia and Meta Platforms have outperformed. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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