Citi maintains Apple stock Buy rating, $240 target amid tariff concerns

On Monday, Citi analysts maintained their Buy rating and $240.00 price target for Apple stock (NASDAQ:AAPL), currently trading at $195.27 after a 7.57% decline over the past week, amidst discussions of potential tariffs on the tech giant’s products. The conversation was sparked by reports that former President Trump suggested imposing a minimum of 25% tariffs on Apple if iPhones sold in the United States were not manufactured domestically. According to InvestingPro data, Apple maintains a strong financial health score of GOOD, despite recent market pressures.

The analysts projected that a 25% tariff on all U.S. product imports, with iPhones representing approximately two-thirds of these imports, could lead to a roughly 1.3% increase in incremental gross margin impact. This could translate to an estimated 4% impact on Apple’s earnings per share (EPS) in fiscal year 2026. The company currently maintains a healthy gross profit margin of 46.63% and generates substantial revenue of $400.37 billion.

Citi’s base case scenario assumes a 20% tariff on imports from China and a 10% tariff on those from India. The firm also anticipates that Apple might offset one-third of the increased costs by passing them on to customers and suppliers.

Despite the potential challenges posed by the tariffs, Citi’s stance on Apple’s stock remains unchanged. The firm’s analysis considers the implications of the tariffs on Apple’s financial performance and suggests that the company could mitigate some of the cost impacts.

Apple’s stock performance will continue to be watched closely by investors as the situation regarding the proposed tariffs unfolds. The company has not yet made a public statement in response to the tariff discussions. Trading at an EV/EBITDA multiple of 20.75x, InvestingPro analysis indicates that Apple is currently overvalued relative to its Fair Value. For deeper insights into Apple’s valuation and 12+ additional exclusive ProTips, consider accessing the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Apple Inc. has been the focus of significant developments affecting its operations and market perceptions. Goldman Sachs reaffirmed its Buy rating for Apple with a price target of $253, despite potential tariffs on iPhones manufactured abroad. Similarly, JPMorgan maintained an Overweight rating with a $240 target, highlighting Apple’s ability to navigate these tariffs, which could see a 25% increase applied to all smartphones sold in the U.S. President Trump announced that this tariff would also apply to other manufacturers like Samsung (KS:005930), ensuring fairness across the industry.

In a separate matter, Apple CEO Tim Cook has been actively opposing a Texas law requiring age verification for device users. Cook personally reached out to Texas Governor Greg Abbott, advocating for alterations or a veto of the legislation. Meanwhile, cryptocurrency exchange Kraken plans to offer tokenized equities for non-U.S. customers, including Apple stocks, allowing 24/7 trading on a digital ledger. This move aims to facilitate international investors’ access to U.S. stocks outside traditional market hours.

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