As Apple Inc. (NASDAQ: AAPL) stock dropped more than 10% from its all-time high (ATH) over the past three weeks, Edison Lee, the Head of China Technology, Telcom, and Software Equity Research at Jefferies Financial Group Inc. (NYSE: JEF), lowered the firm’s 12-month price target.
Lee downgraded Apple stock rating to ‘Underperform’ from a ‘Hold’, according to a note sent to clients on August 10. He further cut the investment bank’s 12-month price target for AAPL to $263.66 from $285.56, which represents a decrease of about 7.67%.
With Apple stock trading at approximately $307.11 at press time, this analyst suggests a potential 14.15% downside. This researcher argued that Apple’s planned all-glass iPhone for September 2027 has been canceled due to production yield issues identified in the supply chain.
Jefferies also cut its fiscal 2028 and fiscal 2029 earnings-per-share (EPS) estimates, citing the setback and rising memory costs. Already, Apple is reportedly seeking approval to tap China’s memory chips from ChangXin Memory Technologies (SSE: 688825) for use in iPhones, MacBooks and other devices.
Moreover, the AI boom has squeezed global memory supply, thereby increasing Apple’s production cost.
Wall Street analysts’ forecast for Apple stock
Following Lee’s ‘Sell’ signal on Monday, 30 Wall Street analysts surveyed by TipRanks have set an average 12-month price target of $334.43. Consequently, these experts expect an average rise of 8.9%.
Worth noting that the highest 12-month price target for AAPL is $400 while the lowest is $245.
AAPL share price outlook
Over the past 30 days, Apple stock price dropped by roughly 3.21%. As a result, the company’s market capitalization was at around $4.6 trillion at the time of publication.
If the company’s stock price continues with its recent bearish momentum, Lee’s target could be achieved. However, if Apple receives a green light to use China’s chips, the average 12-month price target from the 30 analysts could be reached.
