Analyst Erik Woodring from Morgan Stanley maintained a Buy rating on Apple (AAPL – Research Report) and keeping the price target at $235.00.
Erik Woodring has given his Buy rating due to a combination of factors that suggest the market may have overreacted to recent legal challenges Apple is facing. Despite concerns about the potential impact of the Apple v. Epic injunction and changes to US App Store rules, Woodring believes the fundamental impact on Apple’s earnings per share (EPS) and valuation is minimal.
The analysis indicates that only a small percentage of users are likely to bypass the App Store, posing a limited risk to Apple’s revenue. Furthermore, Apple has the potential to offset any revenue at risk by implementing a modest price increase for its services. Additionally, historical data from similar legislative changes in the EU suggests that market fears may be exaggerated, supporting the Buy rating for Apple’s stock.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $250.00 price target.