Apple's new iPhones are likely to be more expensive than what Wall Street currently expects, a potential boost to the stock ahead of the company's upcoming product launch.
Bank of America Merrill Lynch reiterated its buy rating on the company Thursday, arguing that Apple's stock typically performs well ahead of big events and that the potential for higher iPhone average selling prices could usher in even more upside.
"iPhone pricing is likely higher than embedded in consensus," wrote Bank of America analyst Wamsi Mohan. "Although investor expectations are for some moderation in pricing for 2019 models, we expect Apple to continue to price the iPhones for value, which should drive upside to consensus estimates." Apple would expect customers to be willing to pay more for this new generation of devices with larger screens.