After The Wall Street Journal reported that Apple (AAPL) is in talks to purchase Jay Z's music streaming service Tidal, Piper Jaffray analyst Gene Munster said his "best guess" is that Apple could possibly buy the service for less than $500M, which compares to the $3B it paid in 2014 to acquire Dr. Dre's Beats Music.

A deal for Tidal would give Apple Music more access to exclusive hip-hop content and the report highlights how Apple continues to increase its focus on its "highly profitable and predictable" services business, according to Munster, who keeps a $153 price target and Overweight rating on Apple shares.