BofA Slashes Apple Price Target to $370 Amid Margin Concerns
BofA Securities has cut its price target for Apple to $370 from $380. The investment firm still maintains a Buy rating on Apple shares, suggesting that it expects the stock to perform well despite the lower target.
The main reason for the lower target is Apple's iPhone pricing strategy. BofA said that the new iPhones are priced lower than expected, which could help Apple sell more devices but also put pressure on profit margins.
Another concern is higher memory and component costs. If Apple sells more iPhones at lower prices while paying more for these components, it may make less profit on each device.
BofA has also cut its 2027 earnings estimate for Apple to $9.98 per share from $10.32 per share. This forecast reduction is linked to the weaker margin outlook.