Tech giant Apple (NASDAQ:AAPL) has not been having a good run of things lately in the ongoing patent dispute over its Apple Watch product. In fact, new reports say it just took another hit from a U.S. appeals court today, which sent Apple stock down fractionally in Friday afternoon’s trading.
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With two previous decisions already against it, Apple took another blow as the appeals court allowed a complaint from Masimo (NASDAQ:MASI) to stand. The patents in question revolve around a way to measure blood oxygenation via light, which is what Apple was using in the Apple Watch. The process bore too much similarity to Masimo’s method for its liking, and Masimo took Apple to court accordingly. The U.S. Court of Appeals for the Federal Circuit, in turn, noted that the arguments had been considered, and it found that Apple’s arguments were not “persuasive.”
What’s Left for Apple?
While the import ban is still on hold, reports note that this latest development may bring it back into effect soon. That could be a problem for Apple. It does have some alternatives, though; it can license the technology from Masimo, or it can remove the feature altogether. Apple Watches have no shortage of features, and losing one likely won’t make the Apple Watch a waste of time for the users. However, Apple’s ability to win in court seems less likely with each successive loss seen in the current run of cases.
What is the Forecast for Apple Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 23 Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 38.3% rally in its share price over the past year, the average AAPL price target of $203.35 per share implies 9.64% upside potential.
