Citi raises Apple forecast to the highest on Wall Street, predicts another 17% gain from here

Published Tue, Jun 16 20206:54 AM EDTUpdated Tue, Jun 16 202011:38 AM EDT

(This story is for CNBC PRO subscribers only.) Apple shares, which hit a record last week, still have more room to run, Citi said on Tuesday. The firm raised its 12-month price target on Apple to a Wall Street high $400 from $310 and said there are five things it thinks will push the stock even higher. They include the tech company's much anticipated 5G launch, lower expectations for the upcoming iPhone, growth potential in Apple Services and Wearables and share gains due to Huawei restrictions. Even as smartphones, PC's and tablets struggle, the firm said it's the company's trademark iPhone that will carry it forward. "We expected the new iPhone 12 5G phones to be available in mid-October or November, but we still expect them to be available in plenty of time for the Christmas holiday season," analyst Jim Suva said. "With inventory exiting the March quarter below seasonal levels and April-May data suggesting a rebound in sales in China since stores have reopened, we believe that consensus estimates have been sufficiently set lower for iPhones and do not expect this segment to disappoint given the positive data points from Apple's supply chain." The company's wearables division as well as Apple Services which includes its app store and Apple TV+ should continue to grow, the analyst said. "Apple Services continues to accelerate, specifically with the app Store, as engagement with apps continue to accelerate," Suva wrote. Though stores closures might impact some shipments the firm said it thinks growth will return to the wearables category where it says the tech giant "probably commands 45-50% share of the market." But even with the stock up 16% this year, the firm said it still sees a buying opportunity. Suva's new target represents a 17% gain from Monday's close. "Despite the recent stock price of Apple shares, we still see upside and reiterate our Buy rating," he said. Apple shares were up almost 2% in midday trading. The next highest Apple Wall Street target is $390 from Bank of America, according to TipRanks.com .

CEO of Apple Tim Cook attends China Development Forum 2019 at the Diaoyutai State Guesthouse on March 23, 2019 in Beijing, China.

Han Haiden | Visual China Group | Getty Images

(This story is for CNBC PRO subscribers only.)

Apple shares, which hit a record last week, still have more room to run, Citi said on Tuesday.

The firm raised its 12-month price target on Apple