BofA Global Research maintains its "Buy" rating on Apple Inc. (AAPL) with a price objective of $265, despite the recent imposition of a 10% tariff on Chinese imports. The report suggests that the tariff's impact on Apple's earnings is manageable, estimating a potential $0.05 EPS reduction if 80% of devices are sourced outside China. If only 50% are sourced elsewhere, the EPS impact could range from ($0.12) to ($0.07). Apple has the option to raise U.S. prices by 3% to offset the tariff impact, though it may choose not to, given the minimal effect on earnings. "We see the potential tariff impact as manageable," notes BofA, highlighting Apple's ability to shift production to countries like India and Vietnam.
The report underscores Apple's stable cash flows and earnings resiliency, with no changes to its financial estimates. BofA's 2025 revenue and EPS projections remain at $411 billion and $7.30, respectively, with a valuation based on 31x 2026 EPS of $8.47. The current stock price of Apple is $227.52, down 3.59% from the previous close.