RBC Analyst Amit Daryanani raised is target from $157 to $168 per share Monday.
Shares of Apple gained 0.8% Monday to $154.28 and are up 33% so far this year. The tech giant's current market cap stands at almost $804 billion.
The tenth anniversary iPhone will help mid-single digital growth through fiscal year 2019, RBC's bullish scenario. "We think that this will be primarily driven by [average selling prices] rising sharply with the launch of a premium priced iPhone 8, along with stable/modestly higher units sold," Daryanani wrote.
Meanwhile, buybacks will reduce the share count by 400 million to 500 million, boosting earnings per share by $1.30 to $1.35. "There is certainly potential for [Apple] to see EPS grow much more quickly from buybacks."
Improved margins and other factors could push Apple stock to $192 to $195 per share in fiscal year 2019, Daryanani wrote, putting its market cap at more than $1 trillion.