Moffett Nathanson has upgraded Apple stock to “neutral” from “sell.” The firm said that several risks weighing on Apple—ranging from Huawei’s resurgence in China to tariff concerns and a U.S. court case over Google payments—have largely eased. Now, valuation remains the main challenge.
For much of this year, analysts argued Apple shares did not reflect mounting threats. Its artificial intelligence push failed to trigger an iPhone “super cycle.” At the same time, anti-American sentiment in China and Huawei’s comeback eroded Apple’s market share, while European regulators targeted its profitable services business.
The biggest risks involved U.S. tariffs and a looming court decision that could have disrupted around 20% of Apple’s operating profit from Google payouts.
“Bit by bit, (almost) all of these risks have fallen away,” Moffett analysts said.
Discounts in China have helped stabilize Apple’s market share. Tariff exemptions shielded the company from major penalties. And Judge Amit Mehta’s ruling this week left Apple’s Google payment deal largely intact, despite earlier declaring it unlawful.
Moffett Nathanson still views Apple as expensive, trading at more than 30 times projected 2026 earnings. The company also faces challenges in building competitive AI tools. However, with the worst-case scenarios no longer a threat, the analysts said valuation alone is not enough for a bearish outlook.
The brokerage set a $225 price target on Apple shares, signaling a more balanced stance for investors.
