Citigroup Starts AAPL Coverage with $110 Target

Citigroup's Jim Suva started covering Apple's stock for investors again on Wednesday with a US$110 target price. Like other analysts, he expects the introduction of the iPhone 6 will have a positive impact on revenue, and he also thinks other analysts are underestimating consumer demand once the new iPhone model is released.

Citigroup starts AAPL coverage with $110 target priceCitigroup starts AAPL coverage with $110 target price

"We believe consensus is underestimating the demand for iPhone 6 which we believe will not only have a larger screen...but importantly much needed 20 percent-plus improved battery life," he said.

Apple hasn't announced new iPhone models yet, but is generally expected to ship a bigger screen model some time in September. The iPhone 5S sports a 4-inch display, and a 4.7-inch glass surface -- presumably for the iPhone 6 -- has been leaked and tested in a video.

Apple's third fiscal quarter earnings report is set for July 22, and while Mr. Suva is clearly optimistic about Apple's performance, he doesn't see the numbers the company announces having a big impact on stock price.

Citigroup has had an on-again-off-again history with AAPL coverage. The company previously started covering Apple in 2012 with a three man team that included Mr. Suva, and reported on the iPhone, iPad and Mac maker ahead of that, too.

Along with his $110 target price, Mr. Suva has a "Buy" rating on Apple's stock. Apple is currently trading at $96.45, up 1.13 (1.18%).

[Thanks to Marketwatch for the heads up]