BofA Cuts Apple Price Target to $370 Amid Margin Pressure Concerns

BofA Securities has adjusted its price target for Apple Inc. (AAPL) to $370 from $380, while maintaining a Buy rating on the stock.

The firm cited lower-than-expected pricing on new iPhones as a factor that could drive higher unit sales but pressure gross margins due to higher memory and component costs.

BofA analyst Wamsi Mohan noted that the new iPhones will allow AI models to run on-device while using Private Cloud Compute for more complex requests, making Siri AI more capable and personalized over time.

The adjustment stems from expectations of slightly lower gross margins, with BofA revising its earnings estimate for calendar year 2027 to $9.98 per share from $10.32.