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Investing.com - Apple (NASDAQ:AAPL), the $3.16 trillion tech giant with a GOOD financial health score according to InvestingPro, has apparently secured a tariff exemption on imported goods to the United States after increasing its pledge to invest an additional $100 billion in the country, according to UBS.
UBS maintained its Neutral rating and $220.00 price target on Apple stock while noting the Trump administration’s tariff stance toward the company has "consistently softened" since early April. Based on InvestingPro’s Fair Value analysis, Apple currently appears overvalued, trading at a P/E ratio of 32.4x with analyst targets ranging from $175 to $300.
The exemption follows Apple’s expanded investment commitment, which adds to the $500 billion previously pledged in late February, though specific details of the agreement remain unavailable.
In a "tariff free" scenario, UBS estimates Apple’s September quarter earnings per share would increase modestly to $1.78 from $1.72, representing approximately 3.5% growth, while fiscal year 2026 EPS could rise to $7.75 from $7.52.
The analysis does not account for potential higher costs from relocating assets to the US or possible geopolitical headwinds from consumers in other markets choosing competing smartphone brands like Huawei, Vivo, Oppo, and Xiaomi (OTC:XIACF).
In other recent news, Apple has announced plans to significantly increase its U.S. investments, committing an additional $100 billion, which brings its total U.S. investment commitment to $600 billion over the next four years. This announcement was made during an event at the White House with President Trump and Apple CEO Tim Cook. However, the company faces potential challenges as President Trump’s threat to raise tariffs on India could increase Apple’s annual costs by $10 billion, potentially reducing its operating income by 7%, according to Deepwater Asset Management’s Gene Munster. Meanwhile, BofA Securities has maintained its Buy rating on Apple, highlighting strong App Store revenue growth of 12.1% year-over-year in the fiscal fourth quarter of 2025. Goldman Sachs also reiterated its Buy rating, noting July 2025 App Store spending grew 13% year-over-year, marking the fastest growth since November 2024. In contrast, Barclays (LON:BARC) raised its price target for Apple to $180 from $173, while maintaining an Underweight rating, attributing some of the quarterly performance to iPhone and Mac sales. The firm also noted that tariff-related pull-in for hardware contributed to some of the outperformance. Wedbush continues to rate Apple as Outperform with a price target of $270, following the company’s U.S. investment announcement.
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