Loop Capital downgrades Apple to Hold from Buy, cuts price target to $330 on iPhone shipment cuts and margin pressure (Oct 20)
What happened
Loop Capital analyst Ananda Baruah downgraded Apple (AAPL) to Hold from Buy on Tuesday morning, cutting the firm's price target to $330 from $370, per Barron's. The downgrade rests on new iPhone data: Apple has reduced its September and December iPhone unit shipments by 10%. Baruah had previously assumed Apple could make up many or most of those units in 2027 because the cuts were supply-related, but now says 'this no longer appears to be the case.' He also warned Apple's gross margins could come under pressure as memory costs keep rising. Apple shares edged down 0.1% to $342.50 in Tuesday trading, after closing at a record $343.46 on Oct. 16.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- AAPL: Loop's PT cut implies ~4% downside from the $342.94 Oct 19 close; share-price and margin thesis challenged by supply-cut iPhone data and rising memory costs. NVDA/Apple supply chain names (memory-heavy server/mobile suppliers) and the Mag 7 cohort (AAPL is the best 2026 Mag 7 performer, +26% YTD) are exposed to the same memory-price-cost dynamic Barclays flagged at Dell/HPE last week.
Sources