On Tuesday, May 27, UBS analysts reiterated a “Neutral” rating with a steady $210 price target for Apple Inc. (NASDAQ:AAPL). This decision came after President Trump posted on social media and threatened to impose a 25% tariff on iPhones that are not manufactured in the US.
A wide view of an Apple store, showing the range of products the company offers.
Despite this threat, UBS analysts expect the impact of such a tariff on Apple Inc.’s (NASDAQ:AAPL) financials to be relatively small. They estimate the tariff could lower the company’s earnings per share (EPS) by about $0.15 to $0.20, which translates to roughly a 2% change if no other mitigating factors come into play.
While the direct financial impact on Apple Inc. (NASDAQ:AAPL) may be limited, UBS analysts noted that the tariff threat could still affect the stock price. The uncertainty caused by such threats can influence how investors feel about the company, which could impact Apple Inc.’s (NASDAQ:AAPL) market performance.
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