Apple Inc.'s (AAPL) - Get Report story is changing and investors should take notice, said a note from UBS on Friday, June 1.

UBS analyst Steven Milunovich raised his price target on the world's most valuable company to $210 from $190 because he sees the narrative around the company changing beyond just that it is a company that makes the iPhone.

While the iPhone is by far the company's most popular and valuable product, Milunovich said he believes Apple's other hardware products and higher-margin service offerings have room for growth. 

"Although the next big thing is not in sight, the consistency and optionality of the Apple franchise could improve the P/E over time," Milunovich said. "We think the narrative is shifting from iPhone units to a consistent franchise with low single-digit hardware growth augmented by higher-margin, faster-growing services."

But the iPhone is still the company's bread and butter, and while consternation about slowing iPhone sales growth hurt the stock earlier this year UBS is confident that smartphone consumers will start buying the more expensive, higher-end versions of the phone. 

"Buying intent is down slightly across the world though the mix of iPhone X appears strong. The brand remains aspirational. ... We do think the P/E could rise over time as Apple is perceived more like Nike than like Nokia," Milunovich said. 

Apple shares were up 0.87% to $188.49 on Friday. 

Apple is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAP? Learn more now.