Key Stats for Apple Stock
- Price change for Apple stock in last 6 months: 28%
- $AAPL Stock Price as of Oct. 20: $340
- 52-Week High: $348
- $AAPL Stock Price Target: $328
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What Happened?
Apple (AAPL) shares fell after Loop Capital cut its rating to Hold from Buy. The investment firm also lowered its AAPL stock price target to $330 from $370.
The note came out on Tuesday and pointed to new iPhone supply chain data.
Apple had earlier cut September and December quarter iPhone shipments by 10%, and Loop thought Apple could make up many of those phones through 2027.
The cuts were tied to memory and processor supply, not weak demand.
Analyst Ananda Baruah now says that no longer looks true as supply chain checks suggest Apple has no plans to recover the 13 million iPhones cut in the second half of 2026.
Here is what changed in Loop’s numbers:
- Normalized EPS estimate cut to $11 from $12.
- December quarter iPhone units: 79 million, versus 85 million expected by the Street.
- December quarter average selling price: $1,123, down from $1,239.
- 2027 iPhone revenue: $285 billion, down from $315 billion.
- 2027 EPS: $9.76, down from $10.11.
The new $330 target comes from applying Apple’s median P/E of 30 times to the lower $11 EPS. Loop also flagged gross margin risk as memory costs keep rising.
This fits what Apple said on its last earnings call.
Revenue was $109.4 billion, up 16%, and iPhone revenue grew 22%. But Apple guided September quarter growth of just 9% to 11%.
It blamed supply limits and foreign exchange. Management also said it expects to pay even higher memory costs ahead.
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What the Market Is Telling Us About Apple Stock
Investors are treating this as a valuation call, and Baruah said Loop still likes Apple’s long-term share gains and its Services business.
But he said Apple stock needs a “fundamental catalyst reset” after its recent rise.
The concern is simple. Fewer iPhones and lower prices per phone mean less revenue and higher memory costs could squeeze margins on top of that.
That makes it harder to justify a higher price for Apple stock today.
Not everyone has to agree with Loop.
Apple’s last quarter was strong, and management said iPhone demand remains high. Still, the downgrade shows that Apple stock is now being judged on supply and costs, not just demand.
Investors will watch whether memory pricing cools and whether Apple can recover lost shipments.
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So what is Apple stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
