Apple stock holds steady as UBS maintains Neutral rating amid US-Vietnam trade deal

Published 03/07/2025, 15:28
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Investing.com - UBS has reiterated its Neutral rating and $210.00 price target on Apple (NASDAQ:AAPL), a $3.19 trillion market cap giant currently trading at $213.60, following news of a trade deal between the United States and Vietnam. According to InvestingPro data, analyst targets for Apple range from $173 to $300, reflecting mixed sentiment on the stock’s valuation.

The US recently announced it had signed a trade agreement with Vietnam, a country that has become increasingly important for technology supply chains in recent years.

Despite Vietnam’s growing significance, UBS analyst David Vogt noted that the "scale and scope of the offerings in the country relative to China is small" for Apple’s manufacturing network.

According to UBS analysis, mainland China remains Apple’s largest supply region, representing over 35% of total discrete locations in the company’s supply chain.

By comparison, approximately 35 Apple suppliers operate roughly 38 locations in Vietnam, accounting for only about 5% of Apple’s supply chain footprint, with material assets concentrated in Bac Giang, Bac Ninh, Hai Phong, Phu Tho, and Vinh Puch.

In other recent news, Apple has seen several developments that could impact investor decisions. Jefferies upgraded Apple’s stock rating from Underperform to Hold, citing a potential revenue growth of approximately 8% and earnings per share growth of about 10% for the June quarter. This optimistic outlook is driven by increased demand in China, although Jefferies also noted concerns about flat iPhone unit growth in the latter half of 2025. Meanwhile, UBS maintained a Neutral rating on Apple as the company considers a significant acquisition or partnership with Perplexity AI, valued at over $14 billion. UBS highlighted potential risks associated with this deal, including Perplexity’s past allegations of unauthorized content use. Additionally, JPMorgan lowered its price target for Apple to $230, maintaining an Overweight rating due to anticipated moderation in iPhone demand. JPMorgan cited potential tariff impacts and macroeconomic uncertainties affecting the iPhone 17 series. In another development, Apple Music announced the opening of a new studio facility in Los Angeles, marking its 10th anniversary and expanding its global network of creative hubs.

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