MoffettNathanson upgrades Apple stock to Neutral as key risks diminish

Published 04/09/2025, 14:12
MoffettNathanson upgrades Apple stock to Neutral as key risks diminish

Investing.com - MoffettNathanson has upgraded Apple (NASDAQ:AAPL) from Sell to Neutral with a price target of $225, citing the resolution of several key risks that previously threatened the company’s business. The tech giant, currently valued at $3.41 trillion, maintains a strong financial health score of "GOOD" according to InvestingPro analysis.

The research firm noted that concerns about Apple Intelligence being "mostly a dud" and failing to drive a "Super Cycle" of iPhone upgrades remain, but other significant risks have largely dissipated in recent months. With annual revenue of $408.6 billion and 20 analysts recently revising earnings estimates upward, the company maintains its market dominance.

MoffettNathanson highlighted that discounting in China has helped mitigate market share losses amid anti-American sentiment and competition from Huawei, while tariff exemptions have "almost eliminated material tariff penalties" for the company.

A recent remedy ruling by Judge Amit Mehta has preserved Apple’s lucrative payment arrangement with Google, which MoffettNathanson had previously identified as a major risk since it represents approximately 20% of Apple’s operating profit.

While the research firm still views Apple’s valuation as "too rich" at more than 30 times next year’s earnings for a company with "good but not-great earnings growth," it concluded that "a sell thesis solely supported by valuation concerns is not justified" as fundamental risks have resolved. According to InvestingPro’s comprehensive analysis, which includes over 30 key metrics and financial indicators, Apple currently appears overvalued relative to its Fair Value estimate.

In other recent news, Apple’s App Store revenue has seen a notable increase of 11.4% year-over-year, reaching $6.0 billion in the fiscal fourth quarter of 2025, with total downloads across iPhone and iPad devices rising by 2.2%. Goldman Sachs has maintained its Buy rating on Apple stock, citing the App Store’s growth, and set a price target of $266.00. Similarly, TD Cowen has reiterated its Buy rating, with a price target of $275.00, noting favorable conditions for Apple’s advertising revenues due to Google’s search business remedies. BofA Securities has also increased its price target for Apple to $260 from $250, maintaining a Buy rating, following developments in the Department of Justice’s antitrust case against Google. In another development, General Interface Solution (GIS) has secured an exclusive role in the backend processing for Ultra-Thin Glass used in Apple’s upcoming foldable iPhone and iPad. This partnership involves handling critical components supplied by Corning, essential for Apple’s foldable devices expected in the coming years. These recent developments provide a comprehensive view of Apple’s current market position and strategic partnerships.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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