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Investors are now expected to buy Apple shares as the upcoming iPhone release this September is expected to send the company’s market value above $1 trillion in less than a year by early 2018.

RBC Capital Markets analyst Amit Daryanani stated on Monday that the current stock price and direction will benefit investors for Apple’s capability to deliver revenue return and a significant earnings growth during fiscal 2017 which will make a trillion dollars in market value closer and easier in the next twelve months.

Daryanani also added that Apple’s valuation is poised for long-term revenue and EPS growth and has raised his target price for Apple’s stock from $157 to $168. Apple’s current value is standing at around $798 billion and is expected to hit $1 trillion next year due to a number of factors.

Strong Performance

During its fiscal second quarter of the year, Apple delivered an earnings jump of 10% and a rise in their revenue of 4.5% year over year which records the second time the company reported growth in a row after declining for three quarters in a row back in 2016.

Apple’s iPhone sales also continued to rise and have formed around 63% of the company’s revenue. For the third quarter, Apple was able to record more than 50 million in iPhone sales. The growth pushed through until most recently last March as the company experienced a steady demand for their iPhone 7 Plus.

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Apple’s services revenue also posted robust growth with the App Store, and Apple Music amongst other Apple services raked in $7 billion in revenue during the most recent quarter recording an increase of 18% from a year ago.

Apple then increased its share buyback program due to the company’s renewed confidence about their performance. Apple also increased their capital return program by another $50 billion which now makes the company capital return program at $300 billion.

The stock of the company has also performed exceedingly well in the past couple of quarters where Apple’s share price have rallied by more than 40% in the past two quarters.

Upcoming iPhone Release

With the ongoing and still rising popularity of the iPhone 7 and 7 Plus despite its release a year ago, the company’s revenue is still accelerating despite the upcoming release of the 10 anniversary iPhone this coming September.  Analysts noted that people usually held off from buying the current flagship device months prior to the release of a new device.

This recent quarter Apple reported that sales were still rising along with the demand which will make the upcoming premiumly priced iPhone a major key driver of revenue in the coming quarters following its release. Although reports have recently surfaced that the next iPhone might be a lot cheaper than expected at around $870 to what the markets originally expected at around $100,  analysts still see the company’s revenue and earnings rising since pricing has not been addressed as a problem before.

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