The firm raised the price target of the global technology company to $120 from $115.
RBC Capital reiterated its "outperform" rating and said that forward estimates now incorporate Apple Watch, which is expected to launch in March 2015.
Must Read: Warren Buffett's 25 Favorite Stocks
The firm estimates 20 million Apple watches will be sold at an estimated average price of $520. RBC analyst Amit Daryanani predicts that Apple could achieve $10 billion in added revenue over the period.
Separately, TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."