KeyBanc has upgraded Apple’s stock rating to “Sector Weight” from “Underweight,” citing the recent U.S. tariff exemption on smartphones as a major positive. This move removes a key threat to Apple’s business, making the earlier forecast of a price drop less likely.
While there are still concerns about Apple’s high growth expectations for FY26, slow progress in AI, and legal risks from the DOJ case involving Google, the worst-case scenario from the trade war now seems unlikely.
KeyBanc doesn’t think Apple is completely in the clear yet. They say growth expectations for fiscal 2026 are still very high, and consumer spending may still be slowing. However, they believe the worst-case scenario of a trade war getting worse is unlikely now, As a result, KeyBanc no longer expects further downside for Apple.
