Amidst persistent leadership challenges and uncertainties surrounding AI, analysts at Citi have elevated the price target for Apple’s stock from $315 to $350. This decision rests on several crucial elements that hint at an optimistic future for the tech titan.
### iPhone Sales Trends and AI Prospects Set to Elevate Stock
Citi’s analysts have upheld a “buy” recommendation for Apple’s stock, forecasting a potential rise of 26.3% based on the revised price target. This prediction follows a market close at $277.18, suggesting that analysts anticipate substantial growth driven by a boost in iPhone sales. Numerous consumers are reportedly ready for upgrades after keeping their devices for several years, which may trigger a spike in sales.
The increase in the price target aligns with a recent IDC study that elevated the iPhone shipping forecast for 2025 to 6.1%, up from a former estimate of 3.9%. This favorable outlook is further backed by Apple’s latest quarterly results, during which CEO Tim Cook conveyed confidence in the early sales figures for the iPhone 17. Data from IDC and Counterpoint Research have reinforced this view, underscoring Apple’s robust status in the smartphone sector.
Furthermore, Citi highlighted the potential consequences of Apple’s collaboration with Google, which is anticipated to enhance AI functionalities introduced during last year’s WWDC but have not yet been implemented. Analysts think this partnership could facilitate improvements in Siri and grant Apple the essential time to create its own AI framework.
In recent months, Apple’s stock has demonstrated signs of recovery following a tough commencement to 2025, characterized by a notable drop amid trade tensions earlier this year. Since August, Apple’s dedication to a $600 billion investment in the U.S. has eased some pressures from Washington, enhancing investor confidence. Consequently, Apple’s stock has risen by approximately 30%, achieving a 13.7% increase year-to-date.
In conclusion, the combination of expected growth in iPhone sales and the prospect of improved AI capabilities via collaborations has prompted Citi’s analysts to raise their price target for Apple, reflecting a positive outlook for the company’s future performance.
