"We're trading here because people are optimistic about this next iPhone cycle. People who look at that services business still have a lot of questions," JPMorgan analyst Rod Hall told CNBC's "Fast Money: Halftime Report" on Monday. "But when you look at the iPhone cycle, we don't think people have factored in just how strong of an iPhone cycle this is going to be."
Hall raised his price target to $165 from $142, reiterating his overweight rating on the stock. The average target price is $149.49, according to FactSet.
"We believe there's a lot of potential for momentum on that new iPhone. Now it depends on Apple delivering a good product, but we see a lot of evidence that there is a good product in the pipeline here," Hall said.
Hall said he sees the potential for three upcoming iPhones, at least some of which would feature wireless charging, glass fronts and backs, and a feature that allowed users to refocus photos after they were taken.
That would come after two years of weak replacement cycles, Hall said.