Apple DOJ lawsuit a distraction and overhang, says JPMorgan

JPMorgan analyst Samik Chatterjee says the Department of Justice lawsuit alleging monopoly practices by Apple is unlikely to be a complete surprise for investors. While most investors will treat the possibility of a material change to Apple’s financial outlook as modest, the suit will be a distraction and an overhang on the shares before the process concludes, the analyst tells investors in a research note. JPMorgan says the surprise for it and investors is more in relation to the approach taken by the Justice Department to “target the plethora of Apple’s business practices across the board.” This “could end up being a challenge in relation to opening up scrutiny on multiple fronts, but at the same time benefitting from the lack of focus,” contends the firm. It keeps an Overweight rating on Apple shares.