Citi sees catalysts for Apple shares, starting with May dividend raise

Citi analyst Jim Suva reiterates a Buy rating on Apple shares with a $160 price target saying he sees positive catalysts over the short-, mid- and long-term. The stock closed yesterday down 75c to $144.02.

In the short-term, the analyst expects Apple when reporting earnings on May 2 to increase its quarterly dividend to 63c from 57c and total capital returns authorized to $300B from $250B. In the mid-term, Suva sees Apple benefiting from the iPhone 8 launch in September and potentially lower corporate taxes.

In the long-term, the analyst believes Apple can return to sustainable growth post the iPhone 8 given opportunities in Services and India. He views the stock's current valuation as attractive.