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UBS analyst David Vogt upgraded Apple (AAPL) to Buy from Neutral with a price target of $142, up from $115.

The analyst expects iPhone demand in fiscal 2021 and 2022 to be "relatively stable in-line with historic demand trends" following an analysis of procurement, upgrade rates, and customer retention, specifically outside of China. Further, Apple's multi-year investment in the auto industry, such as self-driving car licenses and light detection and ranging patents, suggests optionality worth at least an incremental $14 per share, Vogt tells investors in a research note.

The analyst increased fiscal 2022 earnings estimates by 7% and revenue by 4% to reflect better iPhone units and average selling prices. He believes the more stable long-term iPhone demand backdrop and option value of its likely entry into the auto market are not currently reflected in Apple shares.