Citigroup maintains a "Buy" rating on Apple with a target price of $315

Citigroup published a report stating that although it believes Apple (AAPL.US) can respond to memory price increases more effectively than its peers, it still expects gross margins to gradually face pressure. Currently, it is estimated that in 2026/2027, there will be gross margin headwinds of 140 basis points/48 basis points, which has taken into account the impact of a 100% increase in DRAM prices in the second half of 2026 and assumes that the impact will ease by 75% in 2027.

The bank maintains its iPhone shipment forecast unchanged, with year-on-year growth of 1.3% and 5.9% for the fiscal years 2026/27, reaching shipments of 246 million and 262 million units, respectively. As competitors face greater risks from rising component costs, Apple is expected to increase its market share this year, especially in the mid-range product segment.

The bank slightly lowered its earnings per share forecast for Apple for the fiscal years 2026 and 2027, maintaining a target price of $315 and a "Buy" rating