A "dark cloud" over Apple's stock is lifted with news of a potential trade deal, according to one analyst.
A proposed 15% tariff on $160 billion worth of consumer goods will reportedly be delayed, multiple news outlets reported on Thursday. That tariff, which would have been applied to smartphones, laptops and other electronics beginning Dec. 15, loomed over shares of Apple, the semiconductor sector and other tech stocks, wrote Wedbush analyst Dan Ives on Thursday.
"With the impending $160 billion torpedo now dodged by tech stocks we believe there is room to go higher (we continue to believe 5%-7% rally into year end for tech) from current levels heading into year-end given the negative fundamental ramifications that were previously baked into the group," Ives wrote.
On Apple specifically, Ives said the tariffs represented around a $20 overhang on the stock. "With the 15% tariff now likely out of the way, we believe Apple shares are set to move higher as a strong December quarter is on the horizon," wrote Ives, who has a $325 price target on Apple.
U.S. trade negotiators reportedly offered to cancel the Dec. 15 tariffs as part of a an effort to solidify a "phase one" deal intended to de-escalate trade tensions between the U.S. and China, the WSJ reported.