Investing.com - Analysts who have spoken to the company perceive further upside potential for (NASDAQ:Apple) due to three main drivers.
The drivers identified are favorable year-on-year sales comparisons, buoyant iPhone 7 sales and the growing importance of the high-margin services division.
Apple has struggled to meet demand for the iPhone 7 which suggests sales momentum ahead of the expected launch of the latest version of the iPhone, which is likely to be around September.
The Apps section of Apple's services division is growing fast and has the highest margins.
The fact that Apple was confident enough to provide longer-term targets for services shows how bullish they are about the division.
The main risk Apple faces is the dollar, which has strengthened in the current quarter after falling in the same quarter a year earlier.
The weakness of the yuan is forcing Apple to increase iPhone prices in order to maintain margins, which in turn impacts unit sales.
Although President Donald Trump's threat to impose an import tax has yet to be fleshed out, it remains a source of concern.
Apple is currently trading at a price earnings ratio of 16.7 times, just above the sector average of 16.3.
Apple shares closed at $139.20 on Monday, below a 52-week high of $140.27.