Citi raises Apple PT on pricing power, iPhone resilience and AI rollout
AAPL•Valuation remains a concern
Apple shares are up about 16% year to date, outperforming the Nasdaq, which has risen about 13.1%.
The stock recently traded at 33x forward earnings, above its five-year average of 28x, suggesting shares may be overvalued.
Citi lifts price target and keeps buy rating
Citi raises its price target on Apple to $365 from $315 and maintains a "buy" rating, citing stronger margin expectations and confidence in Apple's ability to gain market share despite a weak consumer electronics market.
AAPL shares were little changed in premarket trading.
Pricing power and iPhone outlook support the call
Apple's ability to implement selective price increases should help offset component-cost inflation, while its premium brand and loyal customer base limit demand weakness, the brokerage said.
Citi expects further pricing action during the September iPhone launch, particularly on higher-end models.
The firm also raises its iPhone shipment forecasts and expects 2027 iPhone unit growth of 7% year-over-year to 263 million units.
