Apple Inc. (NASDAQ: AAPL) shares surged at the end of last week, buoyed by new guidance from U.S. Customs and Border Protection that exempts smartphones and other electronics from the latest round of tariffs. Analysts at KeyBanc noted it as a scenario that represents a major positive shift for AAPL.

Highlights of the Exemption

• Tariff Relief: The exemption for smartphones alleviates significant trade war risks for Apple.

• This unexpected development has altered the market’s outlook, easing concerns that had escalated in previous weeks.

Analyst Upgrades

• KeyBanc’s Adjustment: The investment firm upgraded Apple’s rating from Underweight to Sector Weight.

• Analyst Brandon Nispel: Emphasizes that the exemption removes major risks from AAPL’s outlook.

Valuation and Ongoing Challenges

• Apple’s shares currently trade near valuation multiples of 18 times expected EV/EBITDA and 23 times price-to-free-cash-flow, levels consistent with historical averages.

• Despite positive momentum from the tariff news, ongoing scrutiny exists over Apple’s AI initiatives:

  • High expectations for fiscal year 2026 growth remain in focus.

  • Concerns are arising over delays in Siri advancements compared to competitors.

  • Ongoing legal scrutiny related to a Department of Justice lawsuit against Google (NASDAQ: GOOGL) also looms over its services segment.

Market Context

• Stock Rally: The tariff exemption helped lift tech stocks after the previous week’s turmoil linked to the trade conflict.

• Long-term Concerns: Even with the short-term tariff relief, Apple faces longer-term challenges that continue to impact investor sentiment.

Monitoring Apple’s Financial Health

For valuable insights into Apple’s valuation metrics and performance trends, investors can explore the comprehensive data at Entreprenerdly.com.