KeyBanc Capital maintained a Sector Weight rating on Apple (NASDAQ:AAPL) in a note Wednesday, stating that key first look data (KFLD) shows indexed spending was below the three-year average.
According to analysts, the data showed indexed spending rose +27% month-on-month in December, below the three-year average of +37%.
KeyBanc's data indicated below-average spending in each month of the quarter.
"Overall, our data is telling us we should expect below-avg. growth for F1Q24" wrote the analysts. "We are maintaining our F1Q24 Hardware rev. ests, which have iPhone, iPad, Wearables, and total Hardware all below cons. that we believe is consistent with guidance, though lower our estimates for C1Q24, C2Q24, and C3Q24."
The bank's concerns around U.S. upgrade rates and China iPhone sales persist, alongside other factors. In addition, with Apple trading at 18.3x its 2025 adjusted EBITDA, compared to the average, at best, they see the stock as fairly valued and likely to perform in line with the Nasdaq.