BofA Cuts Apple Price Target to $370 Amid Margin Pressure

BofA Securities has adjusted its price target for Apple Inc. to $370 from $380, citing lower-than-expected pricing on new iPhones and higher memory and component costs.

The firm maintains a Buy rating on the stock, but expects slightly lower gross margins due to these cost pressures.

According to BofA analyst Wamsi Mohan, Apple's latest iPhone models will allow AI models to run on-device while using Private Cloud Compute for more complex requests.

Mohan noted that CEO John Ternus emphasized the focus on building reliable products that combine hardware, software, and services during his first major product launch.