Apple: Citi sees strong growth and raises price target

Looking at recent developments at Apple, we see a company that, despite a leadership crisis, an unclear AI strategy, and political pressure, is regaining stability. Citi analysts see this as enough momentum to significantly raise their price target for Apple stock. This is based on new market data, optimistic signals from the iPhone business, and the prospect of faster progress in AI features.

The situation surrounding Apple initially appears contradictory: internal pressure, high expectations for AI, and a stock price that only recovered after a turbulent start to 2025. At the same time, several reports indicate that demand for new iPhones is growing and that Apple may have found a way to accelerate its progress in AI. Citi views these factors so positively that it has raised its price target from $315 to $350.

Citi raises its price target to $350

With this new assessment, Citi reinforces its buy recommendation for Apple. Based on the closing price of $277.18, this represents a potential price increase of 26.3 percent. The analysts expect rising iPhone sales to be the primary driver. According to the CNBC report, they anticipate that many users will need an upgrade after several years with the same device. This alone could significantly boost demand.

iPhone forecasts rise significantly

A recent IDC report reinforces this impression. The shipping forecast for the iPhone in 2025 has increased from 3.9 to 6.1 percent. These figures align with the optimism expressed by Tim Cook in the latest quarterly report, where he stated that initial sales figures for the iPhone 17 were better than expected. IDC and Counterpoint Research have since published reports confirming this trend.

AI Outlook: Potential Support from Google

Citi also mentions the role of a potential agreement between Apple and Google. This partnership could deliver the AI capabilities that Apple announced at WWDC but has not yet implemented. According to Citi, a collaboration would offer the opportunity to make Siri more powerful more quickly. At the same time, Apple would have time to further develop its own AI model in the background. The analysts see this as a crucial element in keeping the platform competitive.

The recovery of Apple stock

Apple's stock has recovered from a difficult start to the year in recent months. At the beginning of April, Trump's trade conflicts caused a sharp decline and thus uncertainty in the market. The situation changed from August onward. An expanded commitment of over $600 billion relieved pressure from Washington and stabilized sentiment. Since then, the stock has risen by around 30 percent and is up 13.7 percent year to date.

Apple shows strength despite unanswered questions

Citi's updated assessment shows how solid Apple's core position remains. Rising iPhone forecasts, strong signals from initial iPhone 17 sales, and the prospect of an AI partnership with Google create an environment where a higher price target seems reasonable. Despite uncertainties surrounding leadership and technology, many indicators suggest that Apple is entering a phase where renewed growth is possible. (Image: rafapress / DepositPhotos.com)

Disclaimer: No recommendation for investments

This article does not constitute financial or investment advice. The information contained herein is for journalistic and informational purposes only. Please conduct your own research or consult a financial advisor before making any investment decisions.