Loop Capital Downgrades Apple to Hold, $330 Price Target

Loop Capital analyst Ananda Baruah downgraded Apple (NASDAQ: AAPL) from Buy to Hold with a price target of $330 (from $370).

“We’re downgrading AAPL to Hold from Buy and lowering our PT to $330 from $370 on new iPhone data from Loop Capital Supply Chain Analyst John Donovan as our “normalized” EPS is reduced to $11.00 from $12.00 (and our new PT using an AAPL median P/E of 30x is $330.) The gist is that when AAPL previously reduced its Sep Q & Dec Q iPhone unit ships by 10% we believed they would be in a position to make up many (if not most) of these units through CY2027 as the reductions were supply related (memory & processors) & not demand related.

This no longer appears to be the case.

Further, while not the core aspect of our call today we acknowledge then potential for GM risk as memory costs continue to increase.

We continue to like AAPL’s longer term share gain and Services story… but believe the stock also requires a fundamental catalyst reset after its recent stock appreciation… particularly given its trading at 5 year valuation high’s (36x P/E) as iPhone ships have been reduced and GM could see incremental pressure.”

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