In a research note, Citi analyst Jim Suva told investors that he expects Apple’s (AAPL) stock to trade higher in 2017, helped by an iPhone “super upgrade cycle” and beneficial tax reform, among other reasons. Commenting on the current iPhone 7 cycle, his peer at Longbow noted, however, that a mixed Taiwan supplier sales read adds to existing iPhone noise in the supply chain and supports a view of “a good, not great” cycle for the current generation of the company’s flagship device.

FIVE REASONS FOR APPLE TO RISE IN 2017: Citi’s Suva said in a note this morning that he sees five main reasons Apple’s stock may trade higher in 2017. First, the analyst foresees an iPhone 8 “super upgrade cycle,” driven by newer form factors, such as an OLED curved screen and wireless charging. Additionally, Suva cited the stock’s attractive valuation, with the shares trading at a slight discount despite improving fundamentals ahead, and a tax reform benefit from reduction in corporate taxes and cash repatriation as hinted by the new Trump administration. The analyst also highlighted continued Services revenue growth from a “sticky” user base and growth in the enterprise as Apple increases it partnerships. Longer term, he believes “Applewood,” Apple’s move to gain traction in India, will eventually become material as the company is able to drive increased retail presence and LTE roll out in India enables a better iPhone user experience. Nonetheless, Suva noted that he does not expect any surprises with the December results or March quarter outlook. He reiterated a Buy rating and $130 price target on the shares.

IPHONE 7 CYCLE “GOOD, NOT GREAT”: In a note of his own, Longbow analyst Shawn Harrison pointed out that aggregate November sales for Apple’s Taiwanese suppliers were worse than seasonal even as November iPhone 7 Google search trends held steady from October. The analyst believes that the uneven supplier sales adds to the existing iPhone noise in the supply chain and supports his view of “a good, not great “iPhone 7 cycle. Nonetheless, Harrison told investors that he sees Apple as undervalued, against stabilizing iPhone demand, a growing subscriber base that aids in the company’s ability to monetize its ecosystem, optionality from the jump in R&D spend, and sizeable cash generation. Furthermore, Harrison noted that Apple would benefit from tax code changes or a tax holiday, echoing comments from his peer at Citi. He reiterated a Buy rating and $140 price target on Apple’s shares.