Citi analyst Jim Suva raised his price target for Apple (AAPL) to $300 from $250 after "materially" increasing his sales and earnings estimates. The analyst keeps a Buy rating on the shares, which closed Wednesday up $2.29 to $261.74.

Suva models sales for the December quarter of $89.5B, above the consensus estimate of $87.9B, and earnings per share of 4.58, above the consensus of $4.51. Looking beyond the December quarter, he's also "materially above" consensus for sales and earnings and believes consensus numbers will be moving higher. Suva does not see valuation multiple expansion for Apple, noting the valuation multiple has already expanded materially, but he does see sales and earnings upside. The consensus is underappreciating the Apple Watch and AirPods demand strength as well as Apple's wearables segment, which is likely to surpass $10B of quarterly sales this quarter, Suva tells investors in a research note.

He agrees with consensus that generally believes Apple's services will continue to grow and help margins but thinks the consensus is overlooking the wearable segment.