Wells Fargo Maintains Market Perform Rating and $140 PT on Apple (AAPL) on Potential Impact from Qualcomm's (QCOM) Litigation Against Contract Manfacturers

Wells Fargo maintains Market Perform rating and $140 price target on Apple (NASDAQ: AAPL) following announcement that Qualcomm (NASDAQ: QCOM) filed a complaint against Foxconn, Pegatron, Wistron, and Compal – four manufacturers of Apple’s iPhones and iPads – for breaching its license agreements and other commitments with QCOM and refusing to pay what is contractually due.

Analyst Maynard Um comments that, "taking direct action against Apple for payment would be difficult as the royalty agreement was with the CMs (though QCOM indicated it filed a separate claim against Apple for unlawful interference). QCOM is seeking, among other things, injunctive relief, which could limit Apple’s ability to ship iPhones and iPads."

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $155.47 yesterday.

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