Citi Research Gives Apple a ‘Buy’ Rating, Sets Target Price to $675

By Monday, November 26, 2012 0 Permalink 0

According to Citi, investors are in for 18.1 per cent share price return and 1.9 per cent dividend return over the current price of $571.70 if they buy Apple’s stock today. Citi believes that the recent slide in Apple’s Stock prices was due to a correction that started back in September. The financial services firm expects strong sales in the first two quarters of 2013 which will trigger an upward trend for Apple’s stock.

“We assert that Apple’s share of the smartphone market is at risk from low-end smartphones and competition from other ecosystems,” wrote Citi notes AppleInsider. “We see upside from tablets, but this negatively impacts (gross margins).” Citi added.

When it comes to researching companies, investment firms and financial institutions, assign an analyst to the job. Citi, however, has gone for a more unconventional method of “unique team approach” for its latest coverage of Cupertino. This approach involves work of three different analysts: semiconductor analyst Glen Yeung, software analyst Walter Pritchard and hardware analyst Jim Suva.

The reason we believe is that Apple has multiple business verticals ranging from software to computing hardware to smartphones and tablets. “This reflects Apple’s broad impact to the technology supply chain and allows us to uniquely follow the company from several industry angles,” Citi explained in a note to investors on Monday.