There are even better days ahead for Apple's stock, according to KeyBanc. The firm raised its price target Thursday to $185 from $177 per share, implying 6% upside from Thursday's close of $174.15. Apple has been helping lead the rally back from June lows, with the stock up more than 30% since June 16. " AAPL 's user base is growing across products and geographies; its user growth fuels growth in services, creating AAPL's ecosystem competitive advantage," KeyBanc analyst Brandon Nispel wrote in a note. KeyBanc's data show a moderate increase in iPhone demand, with July sales increasing 3% month over month and 2% year over year. "Despite being at the tail end of the iPhone 13 cycle, the majority of store managers surveyed highlighted iPhone demand remained resilient, aided by continued promotions and upgrades, while the impact of rising inflation continues to be minimal," Nispel said. KeyBanc sees growth and margin upside, strong shareholder-friendly capital allocation and the potential for new products and services. While Apple is expensive by historical valuations, it's attractive relative to other mega-gaps given Apple's superior return on invested capital, Nispel noted. KeyBanc's price target is based on 20 times enterprise value-to-EBITDA using its fiscal year 2024 adjusted EBITDA estimate of $147.3 billion, with iPhone revenue up 7.5% in fiscal year 2022 and 2.3% in fiscal year 2023. —CNBC's Michael Bloom contributed reporting.