Apple shares rebound on Tuesday, tech giant reportedly probed by Japan’s Fair Trade Commission over pressure on parts manufacturers

August 7, 2019 6:52 am

According to a report by the Mainichi newspaper on Tuesday, the Japanese Fair Trade Commission has launched a probe into whether Apple Inc (AAPL) caused pressure on domestic parts makers and abused its dominant position, violating antimonopoly rules.

Apple shares closed higher for the sixth time in the past thirteen trading sessions on NASDAQ on Tuesday. The stock went up 1.89% ($3.66) to $197.00, after touching an intraday low at $194.04 and an intraday high at $198.09.

Shares of Apple Inc have added 24.89% to their value so far in 2019 compared with a 14.96% gain for the benchmark index, S&P 500 (SPX).

In 2018, Apple’s stock went down 6.79%, thus, it underperformed the S&P 500, which registered a 6.24% loss.

According to the report, a survey by Japan’s Fair Trade Commission concluded that the US tech giant had signed contracts, under which local companies were forced to provide free technology and know-how for parts production.

In case a particular firm accused Apple of intellectual property rights violation and requested a revision, the tech company threatened to discontinue business relationship with it, the Mainichi newspaper reported.

Analyst stock price forecast and recommendation

According to CNN Money, the 35 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $228.34, with a high estimate of $270.00 and a low estimate of $150.00. The median estimate represents a 15.91% upside compared to the closing price of $197.00 on August 6th.

The same media also reported that at least 19 out of 40 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 15 – as “Hold”. On the other hand, 4 analysts had recommended selling the stock.

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