Apple (AAPL) shares are hovering near Citi’s (C) worst-case scenario after a delayed Siri upgrade rattled expectations for its AI ambitions. The stock dipped 1% to $219.91 in premarket trading Monday, after falling sharply throughout March. But despite the slump, Citi analysts still see a path to a 36% rally.
Citi Keeps Buy Rating on Apple Despite Weak AI Rollout
Citigroup’s Research team isn’t giving up on Apple. In a note on Monday, analysts led by Atif Malik reiterated their Buy rating with a $275 price target—about 25% above where the stock trades now. They even laid out a bull case where Apple climbs to $300, assuming investors warm back up to Apple Intelligence.
That optimism comes after weeks of disappointment. Apple shares slid in March following reports that the company had indefinitely delayed its AI-powered Siri update, originally teased at last year’s Worldwide Developers Conference. At the time, Apple previewed new capabilities—on-screen awareness, personal context, and app integration—that were supposed to arrive with iOS 18.4.
Delayed Siri Upgrade Tests Investor Patience
Instead, the latest iOS update arrived Monday without the long-awaited Siri changes. But Citi wasn’t surprised. The team believes Apple will “reset Siri software expectations” during its earnings call in May. The real update, they said, likely lands in 2026 with iOS 19, with a more advanced version expected between 2026 and 2027.
Citi’s target price assumes a 30x multiple on 2027 EPS, which they argue is fair given Apple’s growing margins, improving sales mix, and massive cash pile.
Geopolitical Risks Still Linger
There’s no shortage of headwinds though. Citi flagged weaker demand and rising U.S.-China tensions as key risks—especially with Apple so dependent on suppliers in China and Taiwan. That kind of geopolitical friction could easily upend margins or delay products even further.
Still, most analysts remain on Apple’s side. Of 51 tracked by FactSet, 31 rate the stock a Buy, 14 say Hold, and only six recommend selling.
Apple’s near-term pain may just be a reset. If Siri gets its AI brain upgrade on time—and the market buys into the vision—there’s still plenty of upside on the table.
Is Apple a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 17 Buys, 11 Holds, and four Sells. Over the past year, AAPL has increased by more than 30%, and the average AAPL price target of $249.88 implies an upside potential of 13.3% from current levels.
