Some investors may be concerned if there is any further upside to the Apple share price, which has risen around 33 percent in the past 12 months.
However, Steven Milunovich, a UBS analyst, forecasts Apple reaching a stock price of $175 in two to three years, and possibly $200 in some scenarios.
"In the most likely scenario, we see Apple maintaining a 14 times multiple, moving the stock up on rising earnings but at a slowing rate. The iPhone goes ex-growth, new products have moderate success, and margins are flattish," he wrote in a research note published Tuesday.
"For Apple to hit $200, iPhone needs to continue to grow beyond full year 18, new product categories must be established, and buybacks should exceed $50 billion per year, boosting the P/E to 17 times."
However, there is downside risk if the company fails to innovate and iPhone sales turn negative. In this scenario, Milunovich predicts the share price could fall to $125.