Citi raises Apple price target on strong holiday demand for wearables like AirPods, Apple Watch

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Apple CEO Tim Cook discusses the AirPods at a media event in San Francisco on Sept. 7, 2016.
Beck Diefenbach | Reuters

Citi raised its price target on Apple's stock to $300 from $250, as the firm told investors it expects stronger sales and profits this holiday gift-giving season in a note titled "Why this Christmas is Different for Apple."

Apple shares rose 1.5% in trading to close at $265.58. Citi has a buy rating on Apple and the firm's new price target represents a 15% climb in the stock from its current levels.

"We believe consensus is underappreciating the Apple Watch and Apple AirPods demand strength and Apple's wearables segment likely to surpass $10 billion of quarterly sales this quarter," Citi analyst Jim Suva said.

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