Tim Cook, chief executive officer of Apple Inc., speaks about the new iPhone during an event at the Steve Jobs Theater in Cupertino, California, U.S., on Tuesday, Sept. 10, 2019.
Cleveland Research is optimistic about Apple's stock climbing over the next two years, powered by strong iPhone revenues and its fast-growing wearables business.
Apple shares rose 1.6% in trading on Monday from its previous close of $275.15. Apple's stock has soared this year, up 77% so far.
"We have increased our revenue assumptions to reflect stronger momentum in iPhone, services, and other products and we continue to see potential for additional upside," Cleveland Research analyst Ben Bollin said in a note to investors.
Cleveland Research has a buy rating on the stock and expects it to climb another 15% by the end of fiscal 2021.
"Contacts in the Apple supply chain note good sales momentum continued into the holiday season," Bollin said. "The mix of iPhones for newer products has sustained at a higher mix following the launch, leaving us feeling better about [average selling prices] for iPhone in [fiscal year 2020]."