Major Wall Street investment banks such as Goldman Sachs and Bank of America reiterated optimistic views on Apple Inc.
The DoJ argues that Apple is monopolistic in the smartphone market.
The Cupertino, California-based iPhone maker is accused of stifling innovation that could threaten its dominance in the space.
"Customers often choose Apple products - despite several alternatives existing - because of the perceived quality of the products and experience rather than a lack of choice of alternative products," Bank of America analyst Wamsi Mohan wrote in a note.
According to Bank of America, gauging the revenue and earnings implications for Apple is challenging.
Yet, Apple has affirmed its intention to counter the claims and Mohan reiterates a 'Buy' recommendation, driven by a multi-year phone upgrade cycle propelled by Generation AI and sustained momentum from the shift towards services.
The investment bank keeps a 12-month $225 per share price target for Apple, implying a 33% surge from current levels.
Bank of America supported Apple's right to limit access to rival apps that could jeopardize its competitive edge, imposing a fee on developers for platform use, and giving preference to its own products.
Despite the legal challenges, Goldman Sachs maintains a 'Strong Buy' rating on Apple Inc. with a 12-month target price of $232, translating to a potential 35% upside from current levels.
Goldman Sachs analyst Michael Ng, CFA, underscored Apple's continued delivery of premium services and experiences, contributing to an "unmatched brand strength and loyalty."
