Citi maintains Apple stock Buy rating with $240 target amid iPhone demand shifts

Published 11/07/2025, 12:06
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Investing.com - Citi has reaffirmed its Buy rating on Apple (NASDAQ:AAPL) with a price target of $240.00, according to a research note released Friday. Currently trading at $212.41, Apple commands a market capitalization of $3.17 trillion, making it one of the world’s most valuable companies. According to InvestingPro data, analyst targets for the stock range from $173 to $300, with a consensus recommendation leaning toward Buy.

The investment bank has adjusted its iPhone unit sales forecast, now expecting 45 million units in the June quarter, up from its previous estimate of 43 million, and 50 million units in the September quarter, down from 52 million previously.

Citi attributes the June quarter upside to pulled-forward demand driven by tariff pauses and aggressive promotions in China, but maintains caution on full-year iPhone demand due to AI feature delays and pending Section 232 decisions.

The firm’s calendar year forecasts for 2025 and 2026 remain largely unchanged at 226 million and 234 million iPhone units respectively, representing year-over-year growth of -0.5% and +3.1%.

Citi’s $240 price target is based on a price-to-earnings multiple of 28 times the firm’s fiscal year 2027 earnings per share estimate of $8.60.

In other recent news, Apple is gearing up to launch a new lineup of products in the first half of 2026, including a budget iPhone and updates to its iPad and MacBook series, according to Bloomberg. This move is part of Apple’s strategy to stabilize revenue growth following a slowdown in sales. Meanwhile, UBS has maintained a Neutral rating on Apple, citing a slowdown in App Store growth in June, while KeyBanc has adjusted its quarterly estimates, raising its fiscal third-quarter projections but lowering fourth-quarter expectations due to mixed spending data. Evercore ISI reiterated its Outperform rating and $250.00 price target on Apple, even after the departure of Ruoming Pang, a key AI executive, to Meta (NASDAQ:META). The leadership changes in Apple’s AI division, led by Mike Rockwell, are reportedly affecting team morale. Additionally, White House trade advisor Peter Navarro suggested that Apple might believe it is "too big to tariff," highlighting potential vulnerabilities due to its reliance on Chinese manufacturing amid ongoing U.S.-China trade tensions. Despite these challenges, Evercore ISI believes Apple’s approach to AI remains "prudently flexible and cost conscious," which could open up future monetization opportunities.

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