In recent news, a Wall Street investment firm reduced its price target for Apple (AAPL) stock due to weakening demand, particularly in China. Loop Capital analyst Ananda Baruah maintained his hold rating on the stock but lowered his price target from 185 to 170. As a result, Apple stock dropped by 0.9% to 169.99 in morning trading.
Baruah projected that Apple’s overall revenue and earnings per share would decline in 2024 for the first time since 2016. He also stated that quarterly estimates for both the March and June quarters are at risk due to declining demand and increased competition from Huawei and Xiaomi in China. Additionally, the average selling prices for iPhones have flattened for the first time in years, adding to the challenges faced by Apple.
Despite these challenges, Baruah also mentioned potential positive catalysts for Apple stock, including advancements in generative artificial intelligence and the Vision Pro headset. Furthermore, Loop Capital analyst John Donovan reported that Apple has significantly reduced its iPhone builds based on supply chain checks in Asia. The company cut its iPhone orders forecast for 2024 to 199 million units, down 7% to 8% from previous targets, contributing to Apple stock’s more than 11% decline year-to-date.
