Rob Sechan, in a recent appearance on CNBC, said that his firm remains neutral on Apple Inc. (AAPL) stock and reduced its holdings of the name earlier this year.  Sechan believes that Apple Inc (AAPL) faces problems stemming from tariffs and the weakness of its China business, while the valuation of AAPL stock remains elevated and the demand for its products has been fairly low.

On the other hand, the company does have some positive attributes, the investor said.

A wide view of an Apple store, showing the range of products the company offers.

Sechan is the CEO, Managing Partner, and Co-Founder of NewEdge Wealth and the Co-Managing Partner of NewEdge Capital Group.

Apple’s Negative Catalysts

In addition to the tariff and China issues, the demand for Apple’s products recently has been “lackluster,” while its “AI strategy and monetization plan has been far less clear,” Sechan stated.

What’s more, the stock’s valuation is elevated “relative to its growth rate,” Sechan said.

The investor added that he’s “digesting” the potential impact of various, negative macroeconomic forces and price increases on AAPL.

Apple’s Positive Catalysts

AAPL has a strong balance sheet and a “shareholder friendly management team,” Seachen asserted.

Further, he suggested that the Street’s current, negative sentiment towards the name actually makes it more attractive.

Given these positive attributes, “it’s hard to be underweight” Apple, he explained.

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Disclosure: None. This article is originally published at Insider Monkey