Potential Apple-Perplexity deal would come with some risk, says UBS

UBS reiterated a Neutral rating and $210 price target on Apple (AAPL) after media reported that the company is weighing either acquiring Perplexity AI or partnering with the company and adding it as a search engine option within Safari as well as integrating functionality into Siri. While a partnership or integration of Perplexity with Apple’s platform has been discussed for a year, an acquisition would be the largest transaction in Apple’s history and comes with some risk, the analyst tells investors in a research note. While paying at least $14B is a “manageable risk,” Apple’s track record in integrating larger acquisitions has been mixed, the analyst says, adding that Perplexity has faced allegations of unauthorized content use and plagiarism. The firm added that, given Apple’s AI efforts have been a bit underwhelming, it believes a deal would likely be construed as defensive in nature, not a positive catalyst.