Wedbush analyst Daniel Ives raised the price target on Apple (NASDAQ: AAPL) stock to $190 per share from $180 to reflect positive Asia checks on iPhone demand.

The analyst also reaffirmed the Outperform rating and Apple’s place on Webush’s Best Idea List. Asia checks on iPhone demand were positive and signaled a moderate uptick in China demand, Ives writes in today’s client note.

“A clear demand rebound [is] happening in this key region post December despite the uncertain macro backdrop. The months of January and February and early indications around March are steady on the iPhone front for Cupertino globally which is a stark contrast to what we saw in the supply constrained December quarter due to zero Covid China issues,” Ives wrote.

Ives reminds investors that roughly 25% of iPhone owners haven’t upgraded their iPhones in over 4 years.

“With the highly anticipated anniversary edition iPhone 15 set to be launched in the September timeframe the baton handoff from iPhone 14 to iPhone 15 looks to be a steadier transition than some other peak to valley iPhone cycles of the past. We also believe ASPs are bumping up towards a roughly $900 ASP on iPhones which is a noteworthy trend heading into the next iPhone cycle,” he further noted.

Moreover, Apple could witness an acceleration in its Services business next year with Ives projecting that the Service business alone is worth $1.2-1.3 trillion.

On the near-term catalysts for Apple, Ives highlighted Glass-AR/VR headset launch, hardware subscription plan, more services bundling options, and some new hardware launches on the Mac product.

“The golden installed base of Apple is creating more stability in this uncertain macro and remains key to our bullish thesis,” the analyst concluded.

Apple stock is moving higher in pre-market Wednesday.

By Senad Karaahmetovic