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Apple's (AAPL)  market capitalization will eclipse the $1 trillion mark in the next 12 to 18 months, RBC Capital analyst Amit Daryanani wrote in a note to clients today.

He reiterated his "Outperform" rating on the shares and hiked his price target to $168 from $157.

Apple has multiple catalysts which will propel it to the upside, including increased revenue growth through margin expansion that will be driven by the launch of a "premium-priced" iPhone 8, Daryanani noted.

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Expanded share buybacks will also reduce share count by 400 million to 500 million shares, effectively boosting Apple's earnings per share by $1.30 to $1.35, he added.

A reduction in shares also could accelerate if tax policy allows for repatriation of profits held offshore, Daryanani said.

Shares of Apple rose slightly in Monday's trading session. 

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