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Pro Analysis

Apple to rise 20% on iPhone 7 sales: Raymond James

One of the first customers to buy a new iPhone walks out of an Apple store on September 16, 2016 in New York City.
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One of the first customers to buy a new iPhone walks out of an Apple store on September 16, 2016 in New York City.

Raymond James raised its 12-month price target for Apple to $139 from $129, predicting a 20 percent rally in the stock due to stronger-than-expected sales of the new iPhone 7.

"We have seen substantial anecdotal evidence that iPhone 7/7 Plus preorder demand is up y/y [year over year] throughout the U.S. market, while 7 Plus preorder demand looks strong in multiple geographies based on wait time data from various Apple websites in international markets," wrote equity analyst Tavis McCourt in a note to clients Friday.

Following what he calls a "hangover" period of slowing sales when compared to the iPhone 6 model, McCourt predicts the tech behemoth will return to smartphone sales growth in the first quarter of 2017.

Since 2009, McCourt's recommendations have returned an average of 12 percent with a 66 percent success rate, according to TipRanks. That performance makes him a top 200 analyst on all of Wall Street, according to the site.