Apple Stock (AAPL) Gets a Rare Price Target Cut from J.P. Morgan's Five-Star Analyst
J.P. Morgan has kept its Overweight rating on tech giant Apple (AAPL) but lowered its price target from $240 to $230. The firm expects slower revenue and earnings growth in the medium term, mainly due to a temporary boost in iPhone demand earlier this year that could reduce sales later on. Analysts, led by five-star-rated Samik Chatterjee, believe that the upcoming iPhone 17 will offer only minor improvements, which may not be enough to drive strong demand in the second half of the year.
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The team also sees weaker iPhone 17 sales ahead because of ongoing economic uncertainty and earlier purchases by customers trying to avoid price hikes from tariffs. In addition, it is worth noting that some of the recent demand was driven by smartphone subsidies in China. However, J.P. Morgan is more optimistic about the iPhone 18 lineup, which is expected to feature a foldable model and long-awaited AI upgrades. It believes that this could lead to stronger growth in Fiscal 2027, following a slower 2026, which helps form a long-term investment case for Apple.
On the supply side, analysts noted that Apple's decision to shift more iPhone assembly from China to India should help protect its profit margins, despite earlier concerns. Still, new tariffs could lead Apple to raise prices, which might hurt iPhone 17 sales volume. J.P. Morgan has also lowered its earnings estimates and slightly reduced its valuation multiple, thanks to potential risks in the near future. That said, the firm still expects Apple to report strong results for the third quarter of Fiscal 2025, thanks to solid short-term demand and continued support from Chinese subsidies.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 16 Buys, nine Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $226.54 per share implies 13% upside potential.
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