Raymond James Cuts Apple Target to $230 on Tariff Risks, Still Sees Long-Term Upside

Raymond James lowered its price target on Apple (NASDAQ:AAPL) from $250 to $230 while maintaining an Outperform rating, citing growing concerns over tariff-related headwinds that could pressure earnings in the coming years.

The firm trimmed its 2025 and 2026 earnings forecasts, projecting that ongoing import tariffs could cut Apple’s EPS by 8% to 10% if fully applied. Although Apple has ramped up manufacturing outside of China—enough to meet roughly half of U.S. iPhone demand—the future tariff treatment of imports from India and Vietnam remains uncertain after a temporary 90-day exemption pause.

Raymond James now assumes a 15% blended tariff rate on all Apple imports, reflecting a cautious base-case scenario where Apple responds by raising U.S. prices, which could in turn dampen demand and compress earnings.

For the March 2025 quarter, the firm raised its estimates to $96.3 billion in revenue and $1.65 in EPS, up from $94.5 billion and $1.62, driven by strong iPhone 16e demand and consumer pull-forward ahead of potential tariff increases. However, the forecast for June was lowered slightly to reflect expected cost pressures, with EPS revised down from $1.50 to $1.44 and gross margins expected to decline by about 100 basis points.

Apple is expected to begin implementing price hikes in the September quarter to mitigate the impact, but overall, Raymond James reduced its 2025 EPS estimate from $7.31 to $7.15 and 2026 from $8.20 to $7.70.

Despite near-term volatility, the firm views any pullback as a buying opportunity, highlighting Apple’s dominant ecosystem, sustained double-digit growth in Services, and long-term potential from on-device AI capabilities.