TD Cowen bullish on Apple stock, downplays near-term impact of DOJ lawsuit
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On Friday, TD Cowen reaffirmed its positive stance on Apple Inc. stock (NASDAQ:AAPL), maintaining an Outperform rating and a $220.00 price target for the tech giant’s shares.
The continuation of this rating comes despite potential concerns surrounding a broad antitrust lawsuit filed by the U.S. Department of Justice against Apple, which may not go to trial until the second half of 2026.
The analyst from TD Cowen noted that Apple’s iPhone holds a commanding 55-60% unit share in the U.S. market, which translates to over 65% in U.S. revenue share. The U.S. market is significant for Apple, representing approximately 35% of the company’s total revenues and earnings per share (EPS) for the calendar year 2023.
While the outcomes of the antitrust case remain uncertain, the analyst estimated that every 10 million iPhone units sold or a 10% change in Services revenue could impact Apple’s EPS by 2-3%. Despite these potential risks, the analyst believes that regulatory issues might only slightly affect the company’s valuation.
The antitrust case against Apple is a development that investors are watching, as it touches on the company’s dominant position in the U.S. market. However, with the trial possibly years away, the immediate financial implications for Apple are not yet clear. The analyst’s reiteration of the Outperform rating suggests confidence in Apple’s continued performance despite the looming legal challenge.
