Bofa Securities has KEPT ITS BUY Rating On Apple Inc. (Nasdaq: AAPL) and Maintened to Price Target of $ 240. This comes Evite ongoing World About’s Apple’s Important Payment Deal with Google.
This Deal Brings In over $ 20 billion A Year from Google for Having its Search Engine As The Default on Apple Devices, which is about 20% of Apple’s High-Margin Services Revenue.
BOFA ANALYSTS SAY THAT IF THE US COURTS COMPLETELY Eliminate Google’s Payments, Apple’s Operating Profit Coud Drop By 8–10%. However, They Believe That Any Court Restrictions Will Likely Only Affect Payments in The US, Allowing Apple To Keep Review Money from Google’s International Search Traffic.
Even if a ruling cuts Google’s us payments by Half -around $ 10 billion – Apple’s Services Business Would Still Lose A Signanant Amount of Profit, But It Woold Be Manageable.
BOFA REMAINS POSITIVE ON APPLE BACASE OF ITS ONGOING INNOVATIONS, STRONGHARMEN AND SERVICES ECOSYStem, AND ITS ABILITY TO ADJUST TO REGULATORY CHALLENGES. They expect new product launches, increased demand for upgraded iPhones, and Apple’s Growth in Digital Services to Help Offset Any Revenue Drops In ITS Services Sector.
While The Outcome of the Legal Proceedings Is Uncertain, Bofa and Other Wall Street Analyts Generally Agree That Apple Can Handle Tough Situations, Which Supports A Positive Outlook for Investors in the Long Run.
