Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating on Apple yesterday and set a price target of $260.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors related to the recent DOJ-Google ruling, which is seen as beneficial for Apple. The ruling prevents Google from maintaining exclusive contracts for its services, but allows it to continue paying distributors for default placements. This aligns with Apple’s current practice of having Google as the default search engine, with users retaining the option to change it. The decision is expected to maintain the status quo in Apple’s relationship with Google, without immediate material changes to their payment structure.
Additionally, the ruling boosts confidence in Apple’s Services revenue growth, which is projected to increase by 12% year-over-year in fiscal years 2026 and 2027. A significant portion of this revenue comes from licensing, with Google Traffic Acquisition Costs being a major contributor. The price objective for Apple has been raised to $260, reflecting a higher valuation multiple based on increased confidence in the growth of Apple’s Services segment.