Loop Capital cut Apple to hold from buy and lowered its price target to $330 from $370. The firm says iPhone revenue is on pace to miss expectations. Of the 43 analysts covering the stock, 25 have a buy or strong buy and 14 have a hold.
Loop Capital downgraded Apple to hold from buy on concerns that iPhone sales will fall short of revenue expectations. The firm also lowered its price target on the shares to $330 from $370, which suggests about 4% downside from Monday's close.
Apple shares slipped around 1% after the downgrade.
However, the stock has already run higher. Shares are up 26% year to date as Apple enhanced its artificial intelligence and cloud technology integrations and bolstered subscription revenue. That gain pushed the stock's valuation to a five-year high of 36 times price-to-earnings, according to Loop.
Analyst says iPhone 18 Pro demand is weak
Analyst Ananda Baruah argues the stock is unlikely to sustain that momentum because of sluggish sales of the iPhone 18 Pro and Pro Max. Apple previously reduced its Sep Q and Dec Q iPhone unit ships by 10%, and Baruah believed the company could make up many of those units through CY2027 because the cuts were supply related, not demand related.
That view has changed. Baruah wrote in a note to clients that "This no longer appears to be the case." He still likes Apple's longer-term share gain and Services story, but says the stock requires a fundamental catalyst reset.
Loop breaks with Wall Street consensus
Loop's call goes against the consensus on Wall Street. Of the 43 analysts covering Apple, 25 have a buy or strong buy on the stock, while 14 have a hold rating, according to LSEG data.
Source: CNBC
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