Apple Inc. (NSDQ:AAPL) stock is up by 30% since its May lows. However, this hasn’t been a dampener on how Wall Street views the stock. Analysts on Wall Street continue to be optimistic on Apple stock, as highlighted in our recent Apple post. The flurry of upgrades and bullish notes continued on Wall street as analysts from Stifel and Deutsche bank upped their iPhone estimates going into Apple Q3 earnings. Separately, noted Apple analyst Ming Chi Kuo raised iPhone 7 sales expectations citing Samsung’s Note 7 fiasco. Should investors buy into the growing optimism around Apple stock, especially given the huge rally the stock has undergone in the recent months?

Rising iPhone 7 Sales Estimates

Stifel analyst Aaron Rakers raised his price target on Apple stock to $130, up from $120 while also raising the revenue/EPS estimates and iPhone sales expectations for the next two quarters. As reported by Barron’s, the analyst stated:

We are increasing our F4Q16 revenue and EPS estimates from $45.6B/$1.57 to $47.7B/$1.69 (street: $46.9B/$1.66), which now reflects iPhone shipments of 47.0 million vs. our prior 42.2 million estimate (street: 44.6M; 40.0-46.2M range) […] We adjust our F1Q17 (Dec ’16) estimates from $70.5B/$3.01 to $74.3B/$3.17 (street: $74.4B/$3.19) with iPhone shipments now estimated at 76.6M vs. our previously noted conservative estimate of 69.9 million (street: 75.4B).

The new estimates imply incremental iPhone sales of 4.6M in the September quarter and 6.7M in the December quarter. At an ASP (Average Selling Price) of $655 (consensus price estimate), the incremental sales could translate into additional revenue of $3.01B in the September quarter and $4.39B in the December quarter. The iPhone segment could net Apple over $30B revenue in the September quarter based on unit sales of 47M and an ASP of $655. However, the actual incremental revenue could be higher as recent reports indicate a higher proportion of iPhone 7 plus sales, which should drive the ASP higher.