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Citigroup’s Atif Malik initiated research coverage of Apple late Thursday with a buy recommendation and a $240 price target, the highest on Wall Street among more than 30 analysts who cover the iPhone maker, according to FactSet. Apple rose another 0.2% postmarket Thursday after closing at a record $189.59 and approaching a $3 trillion market capitalization. AAPL 6M mountain Apple shares over the past six months. Malik’s price target implies further appreciation of another 27% on top of the 46% advance the stock has already scored in the first half of 2023. “Apple is navigating the macro slowdown and inflationary pressure on consumer spending by consistently gaining share from Android phones,” Malik wrote in a report, noting that iPhones account for 70% of Apple’s total product sales with the highest profit margins among all its products. “The Street is underestimating continued gross margin expansion.” Citigroup assumes Apple can sell at 30 times estimated fiscal 2025 earnings per share, 15% higher than the past three years’ average forward P/E of 26 times earnings. Apple already exceeds Wall Street’s consensus price target of $187.19, according to FactSet. The prior Street-high price objective was Wedbush Securities analyst Dan Ives’ $220, FactSet shows. — CNBC’s Michael Bloom contributed reporting.
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