Citi Reiterates Buy Rating on Apple (AAPL), Keeps PT at $240

On May 27, Citi reiterated its Buy rating on Apple Inc. (NASDAQ:AAPL), keeping its price target of $240 for the stock.

Atif Malik from Citi maintains his rating on Apple, as he sees President Trump’s announcement of 25% tariffs on Apple Inc. (NASDAQ:AAPL) to have a limited impact on the company’s business.

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Malik shared his views on Trump’s threat of special tariffs on Apple if they do not shift the iPhone production to the U.S. President Trump has threatened Tim Cook with additional tariffs on the company if they do not manufacture all products sold in the U.S. domestically.

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”

-Trump posted on May 23 on Truth Social.

However, despite the warnings, Apple and its main Taiwanese supplier, Foxconn, are continuing to expand their operations in India. Malik assessed the proposed 25% tariffs on iPhone imports as a bear case, reaching results that anticipated a limited impact on Apple’s business. A total of two-thirds of Apple’s U.S.-imported products show a 130-basis-point gradual impact on AAPL’s gross margin or a 4% higher EPS impact in FY2026, Malik indicated.

Malik’s base case scenario assessed a 20% tariff on China and a 10% tariff on India. The analyst believes that Apple Inc. will pass on one-third of the additional costs to consumers or suppliers. Apple Inc.’s (NASDAQ:AAPL) gross margin has remained steady during Q2 FY2025 at 47.1%. According to Main Street Data, Apple’s gross margins have remained steady or increased modestly over the past few years. In the trailing twelve months, Apple’s gross margins stood at $400.37 billion as of May 27.

Famously known for its iPhones, Apple Inc. (NASDAQ:AAPL) is a leading technology company that manufactures smartphones, personal computers, tablets, wearables, and accessories, and sells various related services.

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Read Next: 30 Best Stocks to Buy Now According to Billionaires and 15 Small-Cap Healthcare Stocks Hedge Funds Are Buying.

Disclosure. None.