Key Takeaways Citi Research upgraded Apple’s price target to $365 from $315 while maintaining its Buy recommendation The September iPhone 18 debut is viewed by analyst Asiya Merchant as a cru
Shares of Apple (AAPL) received a significant vote of confidence Monday after Citi Research analyst Asiya Merchant unveiled a new price target of $365, marking a substantial increase from the previous $315 level. Her Buy recommendation remains unchanged. With the stock hovering around $316.06 during premarket trading, the revised target suggests potential gains of approximately 16%.
This bullish adjustment arrives just days before Apple’s quarterly financial results, which are slated for release on July 30.
According to Merchant’s analysis, Apple maintains a strong competitive position to capture additional market share across smartphones and personal computers, despite facing headwinds from intensified rivalry and decelerating device market growth.
The iPhone 18 figures prominently in her optimistic outlook. Merchant characterized the anticipated September unveiling as “an important catalyst that could further strengthen investor sentiment.”
Apple has already implemented selective price increases across its product portfolio. Merchant anticipates this pricing strategy will extend into the iPhone 18 generation, with increases concentrated on premium-tier models where consumer demand demonstrates greater resilience.
“While iPhone prices remain unchanged for now, we expect price increases in the upcoming September iPhone launch cycle,” Merchant noted in her research.
She also highlighted the company’s devoted customer ecosystem as a protective factor that should mitigate any demand weakness resulting from elevated pricing.
Merchant maintains measured expectations regarding Apple Intelligence as a near-term upgrade driver. However, she projects that improved Siri functionality will gradually increase user engagement and bolster Apple’s profitable Services segment over the longer term.
The analyst also suggested that the enhanced AI-powered Siri could eventually incorporate subscription tiers, creating an additional revenue stream for the Services business.
Regarding hardware innovation, Merchant forecasts that Apple will introduce foldable products during the fourth quarter of this calendar year.
Citi’s analysis didn’t address Apple’s escalating legal confrontation with OpenAI. The iPhone maker filed suit against its former artificial intelligence collaborator last week, accusing the company of systematic trade secret misappropriation. Apple’s legal team alleges that OpenAI unlawfully obtained proprietary information “at every level” to advance its own hardware ambitions.
In their filing, Apple’s attorneys characterized the action as “a necessary step to expose and begin to remedy the pervasive theft of Apple’s trade secrets.”
OpenAI responded by denying the allegations, with a company representative stating they have “no interest in other companies’ trade secrets.”
This contentious legal battle represents a dramatic reversal from the previously collaborative relationship between the two technology giants.
Investors will receive Apple’s latest quarterly results on July 30.
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