Tech giant Apple is poised for another big year in 2022, according to Citi. Analyst Jim Suva hiked his price target on Apple to $200 per share from $170, which is upside of more than 15%. Suva said in a note to clients on Tuesday that there are several misconceptions about Apple that mean the stock is currently underpriced. "We do recognize that regulatory risks remain a major overhang on the stock, but we view these as headline risk rather that fundamental risk. ... Apple's current market value does not reflect new product category launches. This will change with the launch of the new AR/VR headset in 2022," the note said. The overblown worries about regulatory issues and the expected new headsets are two of the five reasons that Suva listed as being optimistic on Apple next year. Other reasons include continued revenue growth and continued rumors about the Apple car, which is expected to come out later in the decade. Additionally, Suva said he sees a flight to quality in 2022 benefitting stocks with strong track records of returning cash to shareholders, including Apple. "In April 2022, we expect Apple to announce an incremental stock buyback of $90 billion after deploying ~$85 billion in FY2021. We also expect the company to raise its dividend by 10%," the note said. Shares of Apple are up 30% year to date, and have gained more than 4.7% during a volatile December on Wall Street. -CNBC's Michael Bloom contributed to this report.
The Apple logo is seen on a window of the company's store in Bangkok on February 14, 2021.
Mladen Antonov | AFP | Getty Images
Tech giant Apple is poised for another big year in 2022, according to Citi.