Apple regulatory risk remains key share overhang, says Citi

Citi keeps a Buy rating on Apple with a $220 price target after Bloomberg reported last night that the Department of Justice is poised to sue Apple on antitrust violations as soon as today on how the company uses its other products and services to keep customers within its ecosystem. Regulatory risk is a key overhang for Apple with multiple antitrust cases around its rising Services business and pushbacks on its recently announced changes on App Store rules, the analyst tells investors in a research note. Citi adds that on the positive side, alongside Apple’s multiple internal developments of artificial intelligence, it was reported that Apple is in talks with Google to build its generative AI powered Gemini models into iPhones.