TD Cowen reiterates Buy rating on Apple stock, maintains $275 target

Investing.com - TD Cowen has reiterated its Buy rating on Apple (NASDAQ:AAPL) stock, maintaining its price target of $275.00. The tech giant, currently valued at $3.49 trillion, is trading above its InvestingPro Fair Value, with analysts’ targets ranging from $175 to $300.

The firm views the US District Court for DC’s remedies for Google’s search business as largely favorable for Apple’s advertising revenues, particularly licensing from Google TAC (traffic acquisition cost) payments.

TD Cowen notes that revenue sharing and Safari search defaults can continue under the court’s decision, preserving an important revenue stream for Apple.

The non-exclusivity remedies outlined by the court will allow Apple to license non-Google generative AI products, such as those from OpenAI, potentially expanding Apple’s AI partnerships.

According to TD Cowen, Google’s revenue sharing arrangements provide a valuable benchmark for generative AI search competition pricing, which could benefit Apple in future negotiations.

In other recent news, Apple has seen a series of significant developments. BofA Securities has raised its price target for Apple to $260 from $250, maintaining a Buy rating on the stock. This adjustment follows a judge’s memorandum opinion in the Department of Justice’s antitrust case against Google, which seems to have positively influenced Apple’s market perception. Additionally, General Interface Solution (GIS) has secured an exclusive role in processing Ultra-Thin Glass for Apple’s anticipated foldable devices, with products expected in 2026 and 2028.

In a shift within the company’s talent pool, Apple’s lead AI robotics researcher, Jian Zhang, has left to join Meta Platforms, marking part of a larger trend of AI talent exiting Apple. JPMorgan continues to hold an Overweight rating on Apple with a $255 price target, citing potential surprises in the upcoming iPhone launch event that could offer modest upside. Furthermore, Apple is expanding its music service reach by making its radio stations available on the TuneIn platform, which connects to a wide array of global users. These recent developments reflect Apple’s continuous evolution and strategic adjustments in various sectors.

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