Analysts at UBS raised their price target on Apple Inc (NASDAQ:AAPL) to $275 from $235, a week before the company is due to report its fourth-quarter earnings. 

The company also received price target raises from other Wall Street investment banks driven by strong iPhone sales. Raymond James said 5G remains Apple’s biggest opportunity and raised its price target to $280 from $250 per share. The stock currently trades in the $243 range.

Meanwile, in a note to clients, a UBS analyst said: “Investors have seemingly come to share our optimism about C20/21 revenue growth on 5G iPhone upgrade cycle, some new hardware innovation, and rapid proliferation of some key new services.”

READ: Apple seeks to up production of iPhone 11 models by about 10%: Media report

UBS noted that the Silicon Valley giant is by far the “single largest” global underweight for active investors, and as Apple stock has kept moving higher, a “virtuous cycle” has ensued as big investors have become reluctant to be left behind given its weighting in most benchmarks.

The analyst said the stock can still move higher — especially as the “tail effect” from it still being such a big global underweight might last for some time.

“We tweak our iPhone unit estimates and C20E EPS now approximately $13.90 and roll basis forward to C20/21E for a new $275 price target,” said the UBS analyst.

“We believe a higher multiple versus history is justified given healthy iPhone upgrades with 5G, foldable, AR/VR and traction of new services. Our price target implies approximately 18x EV/F20E FCF, slightly below large cap tech average,” added the analyst.

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