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Investing.com - BofA Securities raised its price target on Apple (NASDAQ:AAPL) to $260 from $250 on Wednesday, while maintaining a Buy rating on the stock. The new target sits between the current analyst range of $175-$300, with Apple trading at a P/E ratio of 34.7x and commanding a market capitalization of $3.41 trillion. According to InvestingPro data, 20 analysts have recently revised their earnings estimates upward for the upcoming period.
The price target increase follows news that the judge in the Department of Justice’s antitrust case against Google issued a memorandum opinion on remedies. According to BofA Securities, Apple shares traded higher after market on this development. InvestingPro analysis indicates Apple maintains a strong financial health score of 2.76 (GOOD), despite short-term obligations exceeding liquid assets.
While Google will be barred from exclusive contracts related to distribution of Google Search, Chrome, Google Assistant, and the Gemini App, it will still be permitted to pay distributors for default placement on a one-year basis.
BofA Securities noted that this remedy essentially maintains the current situation where Apple has Google as the default search engine while allowing users to change that default to other search engines in settings.
The court has directed the DOJ and Google to confer and present a joint revised final judgment by September 10, 2025, with BofA Securities citing "increased confidence in Services growth" as the reason for applying a higher multiple of 31x (up from 30x) to calendar 2026 EPS of $8.37.
In other recent news, General Interface Solution (GIS) has secured an exclusive role in the backend processing of Ultra-Thin Glass for Apple’s upcoming foldable devices. This development is significant as GIS will handle critical components for Apple’s foldable iPhone and iPad, expected in 2026 and 2028, respectively. In a separate development, Apple Inc. is experiencing a talent shift, with its lead AI robotics researcher, Jian Zhang, departing for Meta Platforms Inc. This move is part of a broader exodus, with three additional AI researchers also leaving Apple recently.
Meanwhile, JPMorgan has maintained its Overweight rating on Apple, citing potential upside from the upcoming iPhone Air launch. The investment bank has set a price target of $255.00 for Apple, suggesting possible surprises in hardware and pricing. Additionally, Goldman Sachs has reiterated its Buy rating on Apple stock, with a price target of $266.00, ahead of Apple’s "Awe-Dropping" special event in September 2025. In another expansion move, Apple Music’s curated radio stations will soon be available on the TuneIn platform, reaching 75 million monthly active users globally. This marks the first time these stations will be accessible outside of Apple’s own app.
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