Analysts Standing Strong
Despite the recent Department of Justice (DoJ) lawsuit alleging monopolistic behavior by Apple in the smartphone market, major Wall Street players like Goldman Sachs and Bank of America have reaffirmed their optimistic stance on Apple Inc. AAPL.
Unshaken Confidence
The DoJ contends that Apple is impeding innovation that could potentially challenge its supremacy in the industry. However, analysts remain undeterred.
Bank of America’s analyst Wamsi Mohan highlighted the allure of Apple products, citing customer preference for quality and experience over mere product scarcity.
Predicting the revenue and earnings impact on Apple remains a complex feat, according to Bank of America.
Strategic Countermeasures
Despite the legal hurdles, Apple is resolute in refuting the accusations. Bank of America maintains a ‘Buy’ recommendation, emphasizing the upcoming phone upgrade cycle driven by Generation AI and the growing traction in services.
The bank upholds a 12-month $225 per share price target for Apple, signaling a potential 33% surge from current levels.
Bank of America defends Apple’s prerogative to regulate access to competitor apps that could undermine its competitive edge, along with levying fees on developers for platform usage and favoring its in-house products.
Goldman Sachs, despite the legal backdrop, continues to advocate for Apple Inc. with a ‘Strong Buy’ rating and a 12-month target price of $232, representing a prospective 35% upside from current valuations.
Goldman Sachs analyst Michael Ng, CFA, lauded Apple’s sustained delivery of premium services and experiences, attributing it to an “unparalleled brand resilience and customer loyalty.”
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