Apple's price target has been lifted from $135 to $150 by analysts at Mizuho on Monday as its rivals rolled out a swathe of new products in Barcelona at the annual Mobile World Congress.
After a review of supply chain data for the iPhone carried out by the investment bank's Japan analysts, Mizuho said it was raising its procurement estimates for calendar year 2017 by 6 percent – or 12 million additional units – to a forecast total of 225 million units: an 11 percent increase over 2016's total.
"We further see potential for a significant product cycle later this year as the new device is likely to induce significant upgrades within the iPhone installed base of around 500-600 million devices," read the note.
"In all, we remain positive on the name on potential upside to estimates, improving sentiment and supportive valuation," added the analysts.
The next iteration of Apple's handset, the iPhone 8, is expected to be released this year with the analysts anticipating its launch to lead to a replacement spree of older versions of the product.
"Based on prior survey work findings around elongating upgrade cycles, we believe that aging devices within the installed could trigger a significant upgrade cycle in the near-term if product features represent material changes from the current line-up," noted the research, highlighting that this year marks the 10th anniversary of the device's release.