The tenth-anniversary iPhone 8, a tax holiday, buybacks and other factors could push Apple's (AAPL) - Get Report market cap above $1 trillion, RBC Capital Markets suggests in a report.

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.

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