Sean Gallup/Getty Images
One of Wall Street's Apple bulls pared their optimism on the tech giant's shares today.
Bank of America analysts kept their “buy” ratings on Apple (AAPL), though they lowered their price target to $240. Visible Alpha says that this is still above the average of the Street, which is around $234. Their reasons include tariff-related costs, which could impact margins and concerns about delayed AI features.
Stocks were rising as the broader markets also rose. Apple's shares were recently up 0.6% to above $205.
Apple is expected to join the Magnificent 7 tech companies in reporting earnings. Its next set of results will be released next Thursday following the closing bell. Bank of America believes that tariff-driven “pull-forward” helped boost sales in the most recent quarter. However, they are cutting their longer-term estimates to adjust for higher costs of navigation a more complicated supply chain and delays in launching AI enabled Siri.
Apple’s shares are down about 18% so far this year, underperforming the benchmark S&P 500. Research firm Vanda earlier this week noted recent net selling of Apple by retail investors even as net buying continued elsewhere—such as shares of Tesla (TSLA) and Nvidia (NVDA).
"Individuals continue to give off capitulation-lite signals, but a full-blown unwind remains moderately far on the horizon," Vanda wrote in a Wednesday note.
