Bank of America Cuts Apple Stock Price Target Amid Lower-than-Expected iPhone Pricing
Bank of America has made a subtle tweak to its Apple stock price target following CEO John Ternus' first product event, which showed off innovative new devices. While maintaining its Buy rating on AAPL, the bank lowered its target to $370 from $380, implying around 17% upside from the current share price of $315.34.
The concern is not about demand for Apple's products, but rather that new iPhone pricing came in lower than expected, potentially pressuring gross margins due to rising memory and component costs. Despite this, analysts are optimistic about the foldable iPhone Duo, which they say stole the show at the event. The device features a folding display that supports iPad-like productivity and comes with planned Pencil compatibility, FaceTime dual capture, and optimized apps.
The bank has raised its iPhone unit estimates by 2 million devices for fiscal 2026 and 5 million for fiscal 2027, but this is tempered by the smaller-than-expected increase in average selling prices. As a result, Bank of America's calendar 2027 earnings estimate has fallen to $9.98 per share from $10.32.