Analysts stand by Apple despite Justice Department suit, see gains ahead

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Analysts stand by Apple despite Justice Department suit, see gains ahead

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for the company as modest,” he wrote. Evercore ISI’s Amit Daryanani retained his outperform rating on the stock, calling the antitrust suit more of “headline risk than a financial risk.” He added that the firm does not anticipate any “meaningful” change in the company’s third-party app store policies unless new legislation is passed in the U.S. Elsewhere, Bernstein’s Toni Sacconaghi argued that a breakup or spinout from the suit appears unlikely. Recent antitrust suit timelines also suggest that a resolution could take three to five years to attain. AAPL 1Y mountain Apple shares over the last year Sacconaghi does “not see likely remediation as materially impacting Apple financially or undermining the iPhone franchise: worst case, Apple pays a fine, and loosens restrictions for competition across the iOS platform, which we believe will have limited impact on iPhone user retention or on Services revenues.” Analysts do see some potential tailwinds for payments companies and digital wallet providers should the Department of Justice win the suit. Barclays analyst Ramsey El-Assal highlighted digital payment and wallet providers such as

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and Block as potential winners if Apple is forced to open up its wallet. The suit currently alleges that Apple uses its monopoly to block tap-to-pay among third-party digital wallets. “We see PYPL and other digital wallet/buy-button providers as primary beneficiaries from a competitive standpoint, if the DOJ prevails,” he wrote. “However, we believe any resolution of today’s action is likely to take a meaningful amount of time.”

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shares are up more than 7% year to date. Square parent Block has popped 8% in that time and 88% over the past six months.

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Analyst,Monopoly and antitrust,Laws,Lawsuits,Justice Department,Investment strategy,Stock markets,

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Holdings Inc,Block Inc,business news
#Analysts #stand #Apple #Justice #Department #suit #gains #ahead

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