The Morgan Stanley (MS) investor note also had other positives for Apple investors. The firm sees Apple selling 260M units in FY 2018 (September 2018 ending), up from the earlier estimate of 253M units and ahead of the current street consensus for 241M units. Moreover, the MS analyst also sees the iPhone ASP (Average selling price) climbing to $713, up from the earlier $695 estimate. These estimates support an FY2018 EPS of $11 on revenue of $266.7B. That's ahead of the current AAPL street consensus, which expects Apple to report an EPS of $10.13 on revenue of $244.7B.

Investors are increasingly bullish on Apple stock

Apple investors have become increasingly bullish over the last couple of months. While around 65% of investors were bullish on Apple stock at the end of December, 81% of investors now think Apple is headed higher. The result has been a constant rise in Apple stock price, as the stock price has climbed from $117 on December 27 to the current price of $136.7 (Feb 21 close price).

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Source: Stocktwits

Given the rising bullishness among Apple investors, the rally in AAPL stock could be far from over.

Final Thoughts

The stock could be headed further higher, driven by the upcoming iPhone supercycle and rising bullishness among Apple investors and analysts, alike. We think Apple stock is a good buy even at a $700B market cap, which is why it has consistently made it to our list of top stock picks, which have beaten the Nasdaq by over 135%.