Global investment bank Barclays has issued a stark warning for Apple stock (NASDAQ: AAPL), predicting a steep correction to $253, nearly 19% below its recent $312 high. In contrast to bullish Wall Street forecasts, Barclays Managing Director Tim Long assigned a ‘sell’ rating, citing an unsustainable price-to-earnings multiple of 34.7x and looming pressure on profitability from supply chain and component costs.
Barclays has set a bearish price target of $253 for Apple stock, urging investors to sell. This forecast comes as the stock reached a yearly high of $312, giving the company a $4.5 trillion market capitalization.
Managing Director Tim Long communicated the ‘sell’ rating in a note to clients. He warned that failing to secure profits now could erase recent gains as a significant drop looms.
The $253 target is based on applying a conservative 25x multiple to Apple’s projected 2027 earnings. The bank states the current P/E multiple of 34.7x is historically stretched and not supported by fundamentals.
Barclays specifically noted that while Apple’s gross margins have held, rising supply chain pressures and memory costs are expected to severely squeeze profitability. This would make a quick recovery from lower price levels difficult.
An investment of $1,000 could, according to this analysis, fall to approximately $810. Long had previously forecast a drop to $248 but revised the estimate to $253.
This bear case contrasts sharply with other analyst projections, such as one from Evercore ISI forecasting a rise to $500. Barclays suggests any entry position should be considered only if the stock nears its predicted bottom.
