In the first three months of the year, the US stock market has certainly struggled. Indeed, it has failed to live up to high expectations, although there are some companies that are still catching a bullish eye from Wall Street. Among them is Apple (AAPL), which has recently gotten a $275 price target from Citi.
The company had recently struggled to gain investors’ attention for a number of reasons. It had yet to catch up to the rapidly ascending AI sector and was unable to leverage its vast user base in that technology. Now, things have taken a turn, with Citi giving two reasons why it’s optimistic for the iPhone developers’ shares this year.
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Apple Gets Boosted Target From Citi For Two Key Reasons
Apple stands out as one of the most interesting investment options entering the year. It has a history of dominance, being the first company to reach a market cap of $2 trillion and $4 trillion, respectively. Moreover, it still boasts the largest market value in the world. However, the stock has struggled, dropping more than 8.5% year to date, as it currently trades at $222.
Yet, one investment bank is standing by its belief in the company. Indeed, Apple (AAPL) has gotten a $275 price target from Citi, as it remains bullish on the company’s prospects this year. In a recent investor note, the bank gave two key reasons for its optimism.
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Firstly, the target was connected to the recent iPS 18.4 update and expanded support for Apple Intelligence. For the last year, the company’s AI strategy has garnered increased criticism. However, the update is viewed as a positive move forward for the company. However, there is another development that could have as much impact.
The company reshuffled its executive team, shifting Mike Rockewell, the Vision Pro project head since 2015, to oversee Siri’s development. This will be key to recalibrating Siri’s software and addressing some of the AI concerns users have had with a rather uneventful rollout.
Currently, Apple is a high-risk, high-reward stock. According to CNN data, just 62% of 50 analysts have a buy rating on the shares. Moreover, it has a median price target of $255, denoting a 14% increase from its current position. However, its low-end projection sits at $184, which would indicate a 17% fall. On the other end, its high-end projection shows a 45% upside, hitting heights of $325 this year.