Citi hikes Apple price target by $50 to $365

Cites market share gains and pricing power

On Monday, Citi raised its price target on Apple to $365 from $315 while maintaining its Buy rating. The move reflects stronger margin expectations and rolled-forward financial estimates amid what the bank sees as Apple’s continued resilience in a tough environment for devices.

Citi remains constructive on the stock, highlighting Apple’s ability to gain market share even as broader smartphone and PC markets face headwinds.

Outperforming a Declining Market

Citi notes that smartphone and PC markets are likely to decline by mid-to-high teens percent. Despite this, Apple is positioned to outperform. According to the note:“continues to outperform the broader smartphone market through share gains, design-driven demand, and strong positioning in the mid-range price segment via promotions and subsidies.”

The firm also stated that Apple “should continue gaining market share despite a slowing devices market.”

Pricing Power and Margin Protection

A key driver behind the higher price target is Apple’s demonstrated ability to implement selective price increases. Citi observed that Apple raised prices on several products mid-quarter amid rising component costs and is evaluating additional memory suppliers to diversify its supply chain.

While iPhone prices remain unchanged for now, Citi expects price increases in the upcoming September launch cycle: “with more focus likely on the higher end models where demand is more resilient.”

The bank also flagged an expected foldable iPhone launch in the fourth calendar quarter. These factors support higher margin expectations following recent price increases.

Source: MacDailyNews

NB: The new price target is shown in the updated analyst target graph. The average target has now risen to $309 while the shares are trading around $317 and set a new all-time intra-day high above $323.

Targets are increasing among the "Buy" rating analysts but the majority of analysts maintain a hold or sell or no rating on the company. There is a possibility that Apple may resume the position of highest market capitalization.

The news of price increases caused a dramatic fall in the share price but a few weeks later the analysts are noting that the company might prosper regardless. This should not come as a surprise to readers of this web site.