– Jabil Circuit (NYSE:) climbed after Citigroup (NYSE:) upgraded its rating on the stock on expectations that weakness at Apple (NASDAQ:), the chipmaker’s largest customer, has bottomed.

Citigroup issued a double upgrade on Jabil to buy from sell, sending shares 8% higher.

For years, investors have upped bets on shares of companies in Apple’s supply chain on expectations that increased iPhone shipments would underpin growth in component providers like Jabil.

That investment narrative, however, came under scrutiny recently as Apple’s iPhones lost some of their luster, with the company ceding ground to both Samsung (KS:) and Huawei, slipping to third position in smartphone market share.

But Citi said it believes the worst is over for Apple and has taken a liking to Jabil, for whom Apple (NASDAQ:) accounts for about 28% of total revenue.

Traders will not have to wait too long to see whether iPhones are back in demand as Apple is reportedly set to unveil its latest slate of phones at an event on Sept. 10.

Apple’s push into wearables, meanwhile, is also a tailwind for Jabil given its strength in the segment, Citi added.

Still, there are headwinds that are unlikely to fall to the wayside just yet.

In its third-quarter report, Jabil warned of continued weakness in semi-capital equipment, automotive and telecom services.

Jabil is up nearly 14% year to date and has a consensus price target of $32.14, according to estimates compiled by

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