Apple (AAPL) Clears One Regulatory Hurdle in India - Mizuho

Mizuho Securities analyst Abhey Lamba reiterated a Buy rating and $120 price target on Apple (NASDAQ: AAPL) after India announced new policies for FDI in single brand retail that can help Apple.

"Indian government announced today that it will offer relaxation of its requirement of 30% local sourcing for three years with a potential for extension up to five years," Lamba commented. "This could clear the way for Apple to open its stores in the country while it would still need to figure out a way to support local manufacturing over the longer term."

The analyst said India can contribute $9-10bn in annual revenues by 2020. That said, although India can potentially deliver 35-40% CAGR over the next five years, they think it will still remain a significantly smaller contributor versus China.

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 $95.33 yesterday.

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