After President Trump said he would impose at least 25% tariffs on Apple (AAPL) if iPhones sold in the U.S. are not manufactured domestically, Citi analyst Atif Malik said that assuming 25% tariffs on all U.S. product imports as a bear case would lead the firm to estimate about 130 basis points incremental gross margin impact, or 4% incremental EPS impact in FY26. However, its base case assumes 20% tariffs on China and 10% on India, and it assumes Apple passes one-third of the incremental costs to customers and suppliers. The firm has a Buy rating and $240 price target on Apple shares, which are down nearly 3% to $196.04 in early afternoon trading.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AAPL:
- Stocks slide as Trump threatens new tariffs against EU and Apple: Morning Buzz
- ‘U.S.-Made iPhones Are a Fairy Tale,’ Says Wedbush about Apple Stock
- Apple’s Cook called Texas Gov. to stop online child-safety legislation, WSJ says
- Now Streaming: Sesame Workshop, Netflix enter streaming deal
- Gold ETFs GLD, GDX Shine Brighter as New Trump Tirade Spooks Investors
Looking for a trading platform? Check out TipRanks' Best Online Brokers , and find the ideal broker for your trades.
Report an Issue