Citi raises Apple target to $365, sees 16% upside potential

Citi raised its Apple Inc. price target to $365 from $315, implying about 16% upside from the current share price.

Analyst Asiya Merchant maintained a Buy rating on the stock, according to a research note dated July 13. The revised target reflects confidence in Apple's services revenue trajectory and the strategic value of its chip supply agreement with Broadcom, which was extended through 2031 in a deal exceeding $30 billion.

Apple shares traded near $313.39 before the upgrade. The new $365 target sits above the consensus average of $325.20, according to TipRanks data, and matches the highest target on Wall Street set by Evercore ISI's Amit Daryanani at $365. J.P. Morgan maintains a Buy with a $325 target, while the broader analyst community rates Apple a Moderate Buy with targets ranging from $315 to $365.

The upgrade comes as Apple navigates a memory chip shortage that has pushed up component costs across its product lineup. The company has raised prices on iPad and MacBook models in recent months. TechInsights analyst Mike Howard estimates Apple may need to increase iPhone pricing by $250 to $300 to maintain margins, potentially pushing the flagship device toward $1,500. Global PC shipments are expected to fall 11.3% in 2026, while smartphone industry shipments are projected to record their steepest annual decline, according to IDC data.

Apple's services business, which includes the App Store, Apple Music, iCloud, and Apple Pay, has become an increasingly important revenue driver as hardware sales face headwinds. Services revenue reached an all-time high in the most recent fiscal quarter, though Apple has not yet disclosed guidance for the current period. The segment carries higher margins than hardware and provides a recurring revenue base that analysts cite as a key valuation support.

The Broadcom chip deal, announced as part of Apple's American Manufacturing Program, locks in domestic silicon production through 2031. Broadcom committed $1.5 billion in capital expenditure to expand its Fort Collins, Colorado facility, where it will produce custom radio frequency and wireless connectivity components for Apple. The agreement gives Apple multi-year supply visibility at a time when the broader semiconductor industry faces capacity constraints.

For investors, the Citi upgrade reinforces the view that Apple's ecosystem and supply chain partnerships provide earnings stability that justifies a premium valuation. The next major catalyst is Apple's fiscal fourth-quarter earnings report, expected in late October, which will show whether the company can sustain margin expansion as rising input costs and softer consumer demand test its pricing power.

This article is for informational purposes only and does not constitute investment advice.