** Citi raises price target on Apple AAPL.O to $365 from $315 and maintains "buy" rating, citing stronger margin expectations and confidence in Apple's ability to gain market share despite a weak consumer electronics market

** AAPL shares little changed in premarket trading

** Apple's ability to implement selective price increases should help offset component-cost inflation, while its premium brand and loyal customer base limit demand weakness - brokerage

** Citi expects further pricing action during the September iPhone launch, particularly on higher-end models

** Citi also raises its iPhone shipment forecasts and expects 2027 iPhone unit growth of 7% year-over-year to 263 million units

** Apple shares up ~16% YTD, outperforming the Nasdaq .IXIC, which has risen ~13.1%

** Stock recently traded at 33x forward earnings, above its 5-year average of 28x, suggesting shares may be overvalued