KeyBanc upgrades Apple on smartphone tariff exemption but growth concerns remain

Brokerage KeyBanc Capital Markets upgrades iPhone maker Apple AAPL.O to "sector weight" from "underweight"

Shares of AAPL rise 2.1% to $202.34 after U.S. President Donald Trump grants exclusions from China tariffs on smartphones, computers and other electronics

Brokerage says, the tariff exemption is seen as a "best-case scenario" for Apple, removing a significant risk from the table

Brokerage flags risk about Apple's growth expectations and potential implications from the Google DOJ lawsuit

"We believe investors are likely to continue to question AAPL's AI strategy given the recent delays in Siri AI features suggested that AAPL's AI-related services are far behind competitors" — KeyBanc

Brokerage notes that AAPL is facing increased competition in international markets, particularly in China

Thirty-two out of 48 brokerages rate the stock "buy" or higher, 13 rate it "hold", 3 "sell" and their median PT is $250 as per data compiled by LSEG

Including session's moves, AAPL stock down 19.5% YTD