Apple is on track to fall short of revenue expectations tied to iPhone sales, prompting Loop Capital to advise investors to reconsider adding to their exposure in the technology company.
Loop Capital downgraded Apple to hold from buy and reduced its price target to $330 from $370. The revised target implies approximately 4% downside from Monday’s closing price.
Analyst Ananda Baruah said Loop remains positive on Apple’s long-term market-share potential and Services business, but believes the stock needs a new fundamental catalyst following its recent rally. He also cited the company’s elevated valuation and reduced iPhone shipments as concerns.
Apple shares have risen 26% year to date as the company expanded its artificial intelligence and cloud technology integrations while strengthening subscription revenue across its ecosystem. According to Loop, the gains have pushed the stock to a five-year valuation high of 36 times earnings.
However, Baruah said the momentum is unlikely to continue if sales of the latest iPhone models, including the iPhone 18 Pro and Pro Max, remain sluggish.
Loop previously expected Apple to recover many of the iPhone units affected by shipment cuts of 10% in the September and December quarters. The firm had viewed those reductions as supply-related, reflecting constraints involving memory and processors rather than weaker demand. Baruah said that outlook no longer appears to apply.
Loop’s assessment contrasts with the broader consensus on Wall Street. Of the 43 analysts covering Apple, 25 have a buy or strong buy rating, while 14 have a hold rating, according to LSEG data. Apple shares fell approximately 1% following the downgrade.
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