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Apple Inc’s (NASDAQ:AAPL) stock rose Monday after JP Morgan upped its price target for the company based on stronger-than-expected iPhone sales.

The firm bolstered its price target to $265 from $243 and maintained its Overweight rating on Apple, according to a report from CNBC.

In an analyst note, JP Morgan wrote that it anticipates 1 million more iPhone sales this quarter than previously expected and 3 million more in the first quarter of 2020.

“We are modestly raising our iPhone volume forecasts and expect investor sentiment on AAPL shares to improve materially given the firm’s ability to drive upward revision to volume expectations despite the 2019 product cycle largely considered to be a muted one,” JP Morgan said.

READ: Apple wants its upcoming original movies to get major theatrical debut before TV+ users stream them

Apple shares ended 2.4% higher Monday at $223.97.

Another key to the increased price target is the rollout of 5G, which JP Morgan expects Apple to unveil in its products in September 2020. 

“In addition to a rise in volume expectations for 2019 product cycle, we are also increasing calendar 2020/2021 volume expectations led by stronger adoption of 5G enabled iPhones,” the firm said. 

Specifically, it expects Apple to sell 198 million 5G phones in 2020 and 200 million in 2021.

—Updated to include closing price—

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com 

Follow him on Twitter @andrew_kessel