Citi Sees Apple Earnings Boost from Price Hikes and Chip Supply Deal

Citi analysts expect Apple to report higher margins for its third quarter due to recent price hikes across its product portfolio. The firm has assigned a price target of $365, implying roughly 16% upside potential as of Apple's last close on Friday.

Apple has secured a $1.5 billion investment in Broadcom's manufacturing facility in Fort Collins, Colorado, and will secure its supply of advanced radio-frequency components and wireless connectivity technologies through 2031. This agreement is expected to be north of $30 billion and support the production of more than 15 billion chips in the U.S.

Wall Street is largely bullish on Apple, with 28 out of 47 analysts covering the stock rating it a 'Buy' or higher, according to data from Koyfin. Analysts expect Apple to continue gaining market share even amid a slowing devices market.