Citigroup and Lehman up Apple predictions

After the announcement of the 3G iPhone and subsequent price drop to $199, predictions for AAPL are looking up. Rich Gardner for Citigroup increased his predicted price point for AAPL to $287, up from $248.

“We remain aggressive buyers of Apple shares at current levels. Apple’s decision to move from a revenue share model to a traditional subsidy model for the 3G iPhone is a significant positive because Apple receives iPhone-related cash flow sooner.”

Gardner also increased his 2009 profits by $1.5 billion, bringing his original estimate of $7.4 billion up to a sizable $8.9 billion. He upped his 2010 profits as well, albeit by less, bringing his estimates up to $10.2 billion from $9.3 billion.

More financial news after the break.