Analyst William Power from Robert W. Baird maintained a Buy rating on Apple (AAPL – Research Report) and keeping the price target at $260.00.
William Power has given his Buy rating due to a combination of factors that reflect both challenges and opportunities for Apple. Despite the potential negative impact of new tariffs on Apple’s gross margins and earnings per share (EPS), Power sees the company’s strategic moves to diversify production as a mitigating factor. Apple has already begun shifting some of its manufacturing from China to India and Vietnam, which could help cushion the impact of tariffs over time.
Furthermore, Power acknowledges that while the tariffs could lead to a decrease in gross margins and EPS in the short term, Apple’s strong market presence in the U.S. and its ability to potentially negotiate tariff exemptions or adjust pricing strategies may offset some of these challenges. Additionally, Apple’s historical ability to navigate complex international trade environments and its commitment to investing in the U.S. economy contribute to Power’s optimistic outlook, supporting his Buy recommendation.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $252.00 price target.
Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AAPL in relation to earlier this year.