Apple shares received a fresh vote of confidence from Wall Street even as the tech giant enters a bitter legal battle with its former artificial-intelligence ally.
Citi Research analyst Asiya Merchant hiked her price target on the shares to $365 from $315 on Monday while maintaining a Buy rating. Shares rose more than 2% to a new high in morning trading; Merchant’s new target implies roughly 16% upside from those levels.
In the analyst’s view, Apple remains well-positioned to gain market share despite stiff competition in smartphones and PCs. The launch of the iPhone 18 in September “represents an important catalyst that could further strengthen investor sentiment,” Merchant wrote. She believes Apple’s ability to selectively hike prices —as the company did late last month, will help offset margin pressures—while its loyal customer base limits demand weakness.
The note made no mention of the dramatic fracture between Apple and its once-close AI partner as Apple last week sued OpenAI for trade secret theft. Apple alleges the ChatGPT maker stole intellectual property “at every level” in order to develop its own hardware. In a filing viewed by Barron’s, Apple’s lawyers asserted that the lawsuit was a necessary step “to expose and begin to remedy the pervasive theft of Apple’s trade secrets.” OpenAI has rebuffed the allegations, asserting through a spokesperson that the company has ‘no interest in other companies’ trade secrets.”
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