Loop Capital cuts Apple price target on demand concerns

Apple (AAPL) stock is trading lower Monday after Loop Capital reduced its price target for the tech giant to $170 per share. The firm's analysts believe that demand for Apple's products is waning, which they anticipate will lead to a decline in the company's annual revenue.

Yahoo Finance's Josh Lipton and Julie Hyman break down the details.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

Editor's note: This article was written by Angel Smith

Video transcript

JOSH LIPTON: And let's move on here to Apple down a bit today with Loup capital lowering its price target on the iPhone maker to 170, projecting that Apple's annual revenue will decline in '24. And that iPhone demand is too soft. So more not so great news for Apple, Julie.

So cruel Loup Capital they do cut down to 170. I think the money line is here. IPhone unit shipments, they say are simply too soft owing to both organic demand, but also competition.

For the first time in years, they say Apple is experiencing flattening iPhone ASPs meaning. Average selling prices. Firm is still at a neutral on that name.

JULIE HYMAN: Yeah, I bolded those two sentiments as well from the note. And in particular, they talk about the competition from China. In particular, what's going on there with Huawei, and that those phones are really gaining more traction. And that is the issue they say.

They also ask could iPhone average selling prices and mix capacity growth be peaking right now, which I think is a really intriguing concept because Apple, yes, of course, the iPhone number of units has been growing. But what really has set them apart is the margins that they collect because of the price of the phones.

JOSH LIPTON: Margins have held in there.

JULIE HYMAN: Yeah. And if the prices are not going to go much higher, then that is potentially going to be a problem.

JOSH LIPTON: Yeah, stocks are down about 12% so far this year.