Deutsche Bank analyst Jeriel Ong last night initiated coverage of Apple (AAPL) with a Hold rating and $205 price target.
The stock closed yesterday down 58c to $197.87.
The analyst sees potential for 2019 iPhone cycle "lull" ahead of 5G iPhones in 2020. And while other hardware is transitioning to growth, namely Watch and AirPods, "this is more of the slow-and-steady variety," Ong tells investors in a research note.
Further, Apple's Services business "increasingly faces a law of large numbers dynamic," adds the analyst.
Taken together, Ong sees a "balance reward profile relative to the risks" with respect to Apple shares.
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