Bank of America is still bullish on Apple (AAPL, Financials), but it's dialing back expectations a bit. The firm kept its “buy” rating on the stock Thursday while cutting its price target from $250 to $240.
The move reflects worries about rising tariff-related costs and delays in rolling out AI upgrades to Siri—factors that could weigh on future demand and margins.
The tech giant is set to report earnings next Thursday after the bell. BofA expects recent sales may have gotten a boost from customers buying early to beat tariffs. But the firm cut its longer-term sales outlook, citing supply chain complications and AI development delays.
So far this year, Apple stock is down about 18%, lagging the S&P 500.
Retail investors have also been pulling back. Research firm Vanda noted net selling of Apple this week, while names like Tesla (TSLA, Financials) and Nvidia (NVDA, Financials) continued attracting attention.
Still, Apple remains one of the tech world's biggest players, and analysts aren't giving up on its long-term potential.
