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The Wall Street investment firm lowered its price target on Monday. apple The company announced that (AAPL) stock has fallen due to a decline in iPhone orders, especially due to weak demand in China.
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Loop Capital analyst Ananda Barua reiterated his hold on Apple stock and lowered his price target from 185 to 170.
Apple stock fell 0.9% to 169.99 in morning trading on the stock market.
“We now expect Apple’s overall revenue and EPS (earnings per share) to decline year over year for the first time since 2016 for calendar 2024,” Barua said in a client note.
Quarterly estimates are at risk
He said the consensus estimate for Apple’s March quarter earnings is subject to “some risk,” while the Street estimate for Apple’s June quarter earnings faces “significant risk.”
“Simply put, iPhone shipments are too soft, driven not only by intrinsic demand but also by competition,” Barua said. He also said that for the first time in years, Apple is seeing average iPhone selling prices flat.
Barua said Apple faces significant competition in China from domestic brands Huawei and Xiaomi.
Apple stock is down 11% since the beginning of the year
Meanwhile, a potential positive catalyst for Apple stock could come from news about generative artificial intelligence and the Vision Pro headset, Baruah said.
Loop Capital analyst John Donovan said in a separate report on Monday that his firm’s supply chain research in Asia shows Apple has “significantly” reduced iPhone production.
Donovan said Apple has lowered its 2024 iPhone order forecast to 199 million units, down 7% to 8% from its previous target.
Apple stock has fallen more than 11% since the beginning of the year.
Follow Patrick Seitz on X (formerly Twitter). @IBD_PSeitz Check out more articles on consumer technology, software, and semiconductor stocks here.
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