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Apple (NASDAQ:AAPL) received an upgrade from KeyBanc Capital Markets and a continued vote of confidence from Wedbush following the U.S. administration's temporary relief on tariffs for electronics, including smartphones.
KeyBanc raised its rating on Apple to Sector Weight from Underweight, citing the tariff exemption as the most favorable outcome possible for the company. The firm's analysts, led by Brandon Nispel, said the risk tied to a worst-case tariff scenario has now eased.
They no longer expect Apple to hit their previously set downside price target. However, they warned challenges remain, including high investor expectations for fiscal 2026, concerns around Apple's approach to artificial intelligence, and potential fallout from the ongoing Justice Department case involving Google.
Meanwhile, Wedbush reiterated its Outperform rating and $250 price target. Analyst Daniel Ives and his team outlined four key implications of the tariff news: Apple has limited time to recalibrate its supply chainIndia likely being the focus for ramping up production; it now avoids immediate steep price hikes for U.S. consumers; tech components may get special regulatory treatment; and the anticipated tariffs appear manageable in the near term.
Wedbush noted that while the base China tariff will still apply, markets had already priced that in. Ives added that without the exemptions, iPhone Pro models could have reached retail prices above $2,000.
Despite the noise, Wedbush remains optimistic about Apple's longer-term prospects, emphasizing its vast iOS ecosystem and services revenue as anchors in an uncertain tech landscape.
Shares of Apple rose more than 6% in premarket trading Monday.
This article first appeared on GuruFocus.