Apple earns Citi's confidence: Target raised to $365 on strong outlook

Despite the challenges facing the smartphone and PC markets, Citi raised its target price for Apple stock to $365 while maintaining its "buy" recommendation. This increase is supported by the bank's confidence in the company's ability to increase market share and maintain strong profit margins.

The bank explained that Apple continues to outperform the market thanks to strong demand for its devices and its marketing strategy. It anticipates price increases for some iPhone models during the September launch, particularly the higher-priced versions, and is also awaiting the launch of its first foldable phone in the fourth quarter.

The report also indicated that Apple's Intelligence technologies may not drive a major upgrade wave in the near term, but will boost the use of the company's services in the long term.

iCloud and advertising are expected to drive more revenue growth for services than the App Store. The price target increase is supported by stronger profit margin forecasts and an improved outlook for the company's financial performance.