Apple, the Technology sector company, was revisited by a Wall Street analyst today. Analyst John Blackledge from TD Cowen maintained a Buy rating on the stock and has a $275.00 price target.
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John Blackledge has given his Buy rating due to a combination of factors that are favorable for Apple’s advertising revenue. The recent US District Court’s decision regarding Google’s search business allows Apple to continue benefiting from revenue sharing and search defaults with Google, which are significant contributors to Apple’s service revenues and overall gross profit.
The court’s ruling prevents Google from entering exclusive contracts, which means Apple can explore licensing agreements with non-Google products, such as OpenAI’s offerings. This flexibility is seen as a positive development for Apple’s advertising services, as it maintains a strong revenue stream from Google while also allowing for diversification in its partnerships.
Blackledge covers the Communication Services sector, focusing on stocks such as Alphabet Class C, Match Group, and Meta Platforms. According to TipRanks, Blackledge has an average return of 13.7% and a 61.51% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $240.00 price target.