Apple stock coasted higher as one analyst doubled down on a positive call ahead of the iPhone maker’s fiscal first-quarter earnings report on Thursday.

J.P. Morgan analyst Samik Chatterjee raised his price target on Apple shares to $315 from $305 while maintaining an Overweight rating.

The stock climbed 3% to $255.41 on Monday, and gained another 2.6% in morning trading on Tuesday.

Chatterjee noted that shares have trailed behind the broader market over the past two months alone, as investor concerns have taken center stage, overshadowing positive data on sales of the iPhone 17.

The impact of a steep rise in memory prices on Apple’s gross margins, and the possibility that the company has exhausted its customers’ willingness to pay more for iPhones, are two issues that are front of mind for many on Wall Street.

However, investors may be too concerned, in Chatterjee’s view. He sees the stock as priced for potential gains, with Apple trading at 30 times forward earnings, “below the peak multiple that is typical for shares heading into a key iPhone product cycle.”

Apple’s fiscal first-quarter earnings report on Jan. 29, covering the three months through December, will likely be a positive signal to analysts, Chatterjee said. He expects the results to highlight the company’s “reliable execution” in a tough economic environment, even as investors wait for the iPhone 18 to trigger a surge in demand.

While investors are concerned about higher costs for memory, J.P. Morgan expects only limited pressure on margins as a result. Apple has long-term contracts with suppliers, and its scale will allow it to buy components at better prices than other makers of IT hardware, Chatterjee said.

Operating expenses, another concern among investors, may turn out to be lower than expected, according to Chatterjee. He says the main additional cost, a fee for access to Google’s Gemini AI models, is expected to begin rising significantly in Apple’s fiscal second quarter, rather than the first.

Wall Street analysts are generally bullish on Apple. More than half of the 50 firms tracked by FactSet rate the stock at Buy or Overweight. Eighteen rate it at Hold and three have it at Sell.