Shares of Apple (AAPL - Get Report) were roughly flat in Tuesday morning trading following an upgrade of the tech company's stock at Cleveland Research to "Buy" from "Neutral" with a $197 price target.

The firm's bullish move is in part predicated on favorable demand for Apple's iPhone 8, its tenth-anniversary model that should generate further revenue growth into 2018.

Cleveland Research projects for an increase in iPhone unit assumptions of 247 million in full-year 2018 because of "encouraging pent-up demand within China and Europe."

The firm also estimates an increase in the average selling price to $700. Cleveland Research is also bullish on sales of the HomePod, projecting between 10 to 15 million units sold, and calls for 20 million shipments of its Apple Watch.

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