Why We've Downgraded Apple's Moat Trend
Switching costs are strong, but not necessarily getting stronger.
After taking a fresh look at our thesis on Apple (AAPL), we are reducing the firm's moat trend from positive to stable, while maintaining our $175 per share fair value estimate and narrow-moat rating. We still view switching costs around the iOS ecosystem as Apple's primary moat source, and while we believe such costs remain strong today, we don't necessarily believe these switching costs are strengthening, thus the shift to stable.
Abhinav Davuluri does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.