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Goldman Sachs analyst Rod Hall upgraded Apple (AAPL) to Neutral from Sell with a price target of $130, up from $83, following last night's results. The stock in premarket trading is up 3% to $137.60.

Apple posted another "large beat" and implied a guidance raise relative to June quarter revenue expectations, Hall tells investors in a research note. The analyst says his original view that the iPhone cycle would disappoint in the midst of Covid "was clearly wrong." Not only has Apple done better than expected on iPhone during the cycle but Mac and iPad have also materially outperformed forecasts, says Hall. iPad demand is "so strong" that Apple believes it will leave $3B-$4B of revenue on the table in fiscal Q3 to June, the analyst notes.

With "this kind of demand backlog and a very difficult re-opening forecasting environment," Hall is moving to the sidelines on the stock.