“Barclays Capital on Monday raised its price target on Apple Inc. stock to $140 from $120 and said consensus estimates for gross margins look conservative,” Ciara Linnane reports for MarketWatch.

“Analysts said the mix shift within the iPhone and iPad toward bigger screens, along with the coming introduction of the high-margin Apple Watch and other services, has not been factored into estimates,” Linnane reports. “‘We believe the multiple should expand further along with higher revenues from recurring services revenue streams, which carry favorable incremental margins,’ they wrote in a note to investors.”

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