Investing.com | Editor Ahmed Abdulazez Abdulkadir
Published Mar 22, 2024 07:11AM ET
On Friday, Rosenblatt maintained a neutral stance on Apple Inc. (NASDAQ:AAPL) with a steady price target of $189.00. The decision follows the U.S. Department of Justice's antitrust lawsuit against the tech giant, alleging abuse of monopoly power to sustain its market dominance.
The firm noted the claims presented in the lawsuit are significant, but chose to reserve judgment until the legal process unfolds. Apple has responded to the allegations, as reported by USA Today, stating that the lawsuit is baseless both factually and legally.
The analyst from Rosenblatt highlighted that the lawsuit seems to suggest behavioral remedies rather than a company breakup. This approach could potentially be less damaging to Apple's stock value, drawing parallels to Microsoft (NASDAQ:MSFT)'s past antitrust experience, which ultimately did not lead to the company's dissolution.
The implication is that Apple might face a similar path, where adjustments to business practices could be the primary outcome rather than a more severe structural change.
The lawsuit in question has brought Apple's business practices under scrutiny, with the Justice Department examining how the company may have leveraged its position to stifle competition.
These legal challenges can have significant implications for companies, as they not only involve potential financial penalties but also can lead to changes in how companies operate within their respective markets.
Apple's assertion that the lawsuit is fundamentally flawed will be tested in court, where the company will have the opportunity to defend its practices. The outcome of this legal battle could have important repercussions for Apple's operations and its position in the technology sector.
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Written By: Investing.com
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