Bernstein Research analyst Toni Sacconaghi reiterated his "outperform" rating on Apple's (AAPL) - Get Apple Inc. (AAPL) Report stock Tuesday morning and hiked his price target to $160 from $140.

The "risk-reward on Apple remains attractive," he wrote. 

Sacconaghi noted factors which would continue to power Apple's run higher including a tax holiday and the iPhone 8. 

"We note that the market has appreciated 6% YTD, the likelihood of low cost tax repatriation has increased substantially, Apple appears committed to continuing to expand its services business (which should command a higher multiple), gross margins fears (at least temporarily) appear to have been mitigated, and the iPhone 8 cycle could be material - all of which support a higher valuation," Sacconaghi wrote. 

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