Analyst sets date when Apple stock will hit $240

Citi has reiterated its Buy rating on Apple (AAPL) with a $240 price target, citing the potential upside from Apple's custom silicon and upcoming AI updates, particularly the possibility of third-party developer access to Apple's AI models. This projection, reflecting an 18.99% upside, is supported by Apple's 4.91% year-over-year revenue increase, a 46.63% gross profit margin, and its return to the top global smartphone sales position in Q1 2025; Morgan Stanley also reiterated a Buy rating with a slightly lower $235 target.

Analysis

Citi has reaffirmed its "Buy" rating for Apple (NASDAQ: AAPL), establishing a 12-month price target of $240, which suggests an 18.99% upside potential and an average return of +8.65% from Apple's current price. This outlook is underpinned by confidence in the growth prospects of Apple's custom silicon chip development and upcoming artificial intelligence (AI) updates, particularly the potential for its AI models to be accessible to third-party developers, leveraging its extensive 2.35 billion user base. Although some AI-enhanced Siri features are reportedly delayed until 2026, the 2025 Worldwide Developers Conference (WWDC) is anticipated to feature significant ecosystem updates and possibly new hardware. Apple's financial position supports this view, highlighted by a 4.91% year-over-year revenue increase, a gross profit margin of 46.63%, and its return to the leading position in global smartphone sales in Q1 2025. This bullish sentiment is shared by Morgan Stanley, which also recently reiterated its Buy rating with a slightly lower price target of $235, indicating a broader analyst consensus on Apple's positive trajectory.

Key Decisions for Investors

• Investors should consider the consistent Buy ratings from major financial institutions like Citi and Morgan Stanley, backed by Apple's solid financial performance (4.91% YoY revenue growth, 46.63% gross margin) and strategic initiatives in AI and custom silicon, which may present an attractive entry or accumulation point.
• Key catalysts to monitor include announcements from the 2025 Worldwide Developers Conference, which could provide further visibility into Apple's AI strategy progression and potential new product cycles, impacting the $240 price target.
• While the long-term AI outlook is a significant driver, investors should remain aware of execution timelines, such as the noted delay of certain Siri AI features to 2026, and assess any potential impact on short-to-medium term sentiment or growth realization.