The firm said it upped its numbers on the tech giant's stock due to its belief Apple is playing out a multi-year story of enhancing margins.
"To that end, we believe consensus estimates for gross margins could be conservative for a few years given historic mix shifts within iPhone and iPad toward bigger screens, along with the introduction of the new high-margin Apple Watch and innovative services," Barclays said.
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"We believe margins are set to continue to move up appreciably over the next few quarters, and our estimates for full year 2016 and full year 2017 could even be conservative given fundamental product mix shifts with new products," Barclays added.
Shares of Apple are lower by 0.32% to $118.55 in pre-market trading this morning.
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."