Apple received a lower rating from Loop Capital on Tuesday as the firm questioned whether the company can recover planned iPhone shipment cuts, according to a analyst note.

Analyst Ananda Baruah lowered Apple's rating to Hold from Buy and reduced his price target to $330 from $370. He also cut his normalized earnings-per-share estimate to $11 from $12.

Loop Capital had previously expected Apple to recover much of a roughly 10% reduction in iPhone shipments for the September and December quarters by 2027. The firm now sees less scope for that recovery, raising concerns that weaker demand may be contributing to the cuts rather than supply constraints alone.

The outlook also faces pressure from rising memory costs, which could weigh on gross margins. Higher component expenses may make it harder for Apple to protect profitability if device shipments remain below earlier expectations.

Valuation is another concern for investors. Apple shares trade at about 36 times earnings, near a five-year high, following substantial gains this year. Loop Capital continues to see potential in the company's services business and market-share growth but believes fresh catalysts may be needed to support further gains.