Piper Jaffray analyst Michael Olson raised his price target for Apple (AAPL) to $270 from $243 after the company reported September quarter revenue and earnings ahead of Street expectations.

The stock in premarket trading is up 2%, or $4.74, to $248.00.

Apple's Services revenue grew 18% year-over-year and was 2% above the Street, while gross margin was essentially in-line at 38%, Olson tells investors in a post-earnings research note.

Looking into fiscal 2020, Apple is in the "midst of a perfect storm," says the analyst, with current iPhone performing at-or-above plan, wearables and Services trending better than expected, and growing anticipation for 5G iPhones that will be coming late in the fiscal year. Olson maintains an Overweight rating on Apple.