Stifel also raised its estimates for fiscal 2016 fourth quarter iPhone sales to 47.0 million phones from 42.2 million phones.
For the fiscal 2017 first quarter, the firm now anticipates sales of 76.6 million iPhones vs. its prior view of 69.9 million iPhones.
The increase is partly due to an 8% to 10% expected upgrade rate for current iPhone users, Stifel noted. The firm estimates that there are currently 700 million active iPhone users.
Deutsche Bank also increased its price target, to $108 from $105, on the Cupertino, CA-based technology company's stock late yesterday, maintaining a "hold" rating.
The firm expects September quarter iPhone sales of 46.0 million units, up from previous projections of 45.6 million iPhones, according to FactSet.
For the fiscal 2017 first quarter, Deutsche Bank estimates sales of 75 million phones compared to the firm's prior outlook of 71 million phones, FactSet notes.
"We believe initial expectations for September quarter iPhone sales were muted given the iPhone 7's mostly unchanged features relative to the 6S and negative supply chain data points into the launch," the firm said.
September promotions from major U.S. carriers should help drive iPhone 7 sales, Deutsche Bank added.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: AAPL