This Analyst Just Downgraded Apple Stock. Here's Why.

Apple (AAPL) stock closed significantly lower on July 31 after management’s disappointing future guidance made GF Securities downgrade the iPhone maker to “Hold.” The multinational cited “supply constraints” as it guided for about 10% sales growth in its current financial quarter, missing the LSEG consensus set at 12%. 

Despite the post-earnings decline, however, Apple shares remain up more than 25% versus their year-to-date low. 

What’s Behind GF Securities’ Downgrade of Apple Stock?

GF Securities downgraded Apple mostly because the giant is reckoning with a global memory crunch. 

Higher memory costs could “lead to a significant price increase for iPhone 18 Pro/PM, leading to uncertainties over demand,” the firm’s analyst told clients. 

Management itself expects gross margin to slip below 47% in Q4. 

More importantly, AAPL shares are currently trading at a forward price-to-earnings (P/E) multiple of more than 38x, which appears rather stretched for a company that issued weaker-than-expected guidance. 

That said, Barchart currently holds a “64% BUY” opinion on Apple, indicating technical momentum nonetheless remains in favor of the Nasdaq-listed firm. 

How to Play AAPL Shares After Q3 Earnings?

Investors bailed on Apple shares also because Q3 marked yet another quarter in which artificial intelligence (AI) did not prove a meaningful driver of growth for the iPhone maker. 

Until Apple Intelligence translates into stronger iPhone demand, faster services growth, or notable expansion in margins, risk-averse investors may choose caution despite the company’s otherwise solid performance. 

That said, GF Securities’ “Hold” rating is still tied to a $369 price objective, which signals potential upside of about 23% from current levels. 

A fresh $100 billion buyback plan announced earlier this year, and a small dividend yield of 0.36% on AAPL also keep it attractive as a long-term holding in 2026. 

What’s the Consensus Rating on Apple?

Note that other Wall Street analysts haven’t thrown in the towel on Apple for the remainder of 2026 either. 

According to Barchart, the consensus rating on AAPL stock remains at “Moderate Buy,” with the mean price target of $322 indicating potential upside of more than 7% over the next 12 months.