Why TD Cowen Stays Bullish on Apple (AAPL) Stock at $275 PT

Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks Investors Are Watching Closely. On September 3, TD Cowen analyst Krish Sankar reiterated a Buy rating and $275.00 price target on the stock.

According to the firm, the US District Court for DC’s remedies for Google’s search business is favorable for Apple’s advertising revenues.

This is particularly true for licensing from Google TAC (traffic acquisition cost) payments considering revenue search and Safari search defaults can continue.

Moreover, the non-exclusivity remedies allow Apple to license non-Google GenAI products, expanding Apple’s AI partnerships.

“Search Remedies Leave AAPL Ad Revs Intact, Supportive for Future GenAI Rates; We view the US District Court for DC’s remedies for GOOGL’s Search business as largely favorable for AAPL advertising revs (i.e. licensing from Google TAC payments) as rev sharing and Safari search defaults can continue. Non-exclusivity remedies allow AAPL to license non-GOOGL GenAI products (e.g. OpenAI). GOOGL rev sharing also provides a valuable benchmark for GenAI search competition pricing.”

Apple is a technology company known for its consumer electronics, software, and services.

While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.