Technology giant Apple Inc. (AAPL) recently announced the acquisition of classical music streaming service Primephonic. The financial terms of the deal have been kept under wraps.
Following the news, shares of the company rose 3% on Monday. It, however, pared its gains slightly to close at $152.91 in extended trade.
With Primephonic under its belt, Apple music users will gain access to Primephonic’s rich content of classical music and exclusive playlist. Notably, Primephonic will be taken offline from September 7, and current users of Primephonic will get free access to Apple Music for six months.
The Vice-President of Apple Music and Beats, Oliver Schusser, said, “We love and have a deep respect for classical music, and Primephonic has become a fan favorite for classical enthusiasts. Together, we’re bringing great new classical features to Apple Music, and in the near future, we’ll deliver a dedicated classical experience that will truly be the best in the world.” (See Apple stock chart on TipRanks)
Recently, Bank of America Securities analyst Wamsi Mohan reiterated a Hold rating on the stock with a price target of $160, which implies upside potential of 4.5% from current levels.
According to the analyst, changes in the App Store, which are pending court approval should be observed carefully. He said “Developers would benefit from this settlement as they get more flexibility than they had desired. Apple could be negatively affected if a significant number of purchases are outside the App Store. Apple does not get paid a commission on any purchases taking place outside of the App or the App store.”
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 19 Buys, 5 Holds and 1 Sell. The average Apple price target of $165.33 implies that the stock has upside potential of 8% from current levels.
Apple scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 18.7% over the past year.