UPDATE: Citigroup Reiterates on Apple on Strong Holiday Outlook

In a report published Friday, Citigroup analyst Glen Yeung reiterated a Neutral rating on Apple AAPL, and raised the price target from $530.00 to $580.00. In the report, Citigroup noted, “Apple shares have moved substantially upward of late, following their typical pattern surrounding the Thanksgiving holiday (Apple typically has outperformed the S&P500 by 500bps the 10-days surrounding Thanksgiving), and reflecting the strength of iPhone 5S sales since launch and the forthcoming China Mobile deal. However, our most recent work suggests Apple may have modestly lowered production forecasts for 1Q14. And while not enough to warrant an estimate revision from us (we are 9.7% below consensus on iPhone unit shipments), from current levels we nonetheless suspect downward pressure on Apple shares is likely in 1Q14. While our estimates remain unchanged, our PT is revised to $580 from $530 as we shift our valuation to 2015 estimates.” Apple closed on Thursday at $567.90.