Citi analyst Atif Malik initiated coverage of Apple with a Buy rating and $240 price target. While the stock is up 46% year-to-date, Apple is navigating the macro slowdown and inflationary pressure on consumer spending by consistently gaining share from Android phones, the analyst tells investors in a research note. The firm sees 30% further upside potential from current levels and believes the Street is underestimating Apple’s continued gross margin expansion. It believes the shift in iPhone sales mix to higher premium models, further share gains in China and India, continued self-design of cellular chips to reduce costs, and a higher margin services sales mix will drive Apple’s margin expansion.
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