From Yahoo Finance: 2025-05-27 15:38:00

Citi maintains a Buy rating on Apple Inc. (AAPL) with a price target of $240 despite President Trump’s threat of 25% tariffs on the company. Trump warned of tariffs if Apple doesn’t shift iPhone production to the U.S., but Apple and Foxconn are expanding in India. Import tariffs could affect Apple’s gross margin and EPS.

Apple Inc. is a leading technology company known for its iPhones, with steady gross margins at 47.1% in Q2 FY2025. Citi analyst Malik projects a limited impact from proposed tariffs on Apple’s business, estimating a 130-basis-point gradual impact on gross margin or 4% higher EPS by FY2026. Apple is expected to pass on one-third of additional costs to consumers or suppliers.

Despite President Trump’s warnings and threats of tariffs, Apple and Foxconn are expanding in India, potentially deflecting the impact of tariffs on iPhone imports. Citi analyst Malik’s base case scenario anticipates a 20% tariff on China and a 10% tariff on India, with Apple possibly passing on one-third of the additional costs. Apple’s gross margins have shown stability over the years, reaching $400.37 billion in the trailing twelve months as of May 27.

Apple Inc. is a leading technology company specializing in smartphones, personal computers, tablets, wearables, and accessories. While AAPL shows growth potential, some AI stocks may offer higher returns with limited downside risk. Investors seeking promising AI stocks with significant upside potential beyond AAPL can explore alternative options for investment opportunities.



Read more at Yahoo Finance: Citi Reiterates Buy Rating on Apple (AAPL), Keeps PT at $240