In a research report released this morning, Brean Capital analyst Ananda Baruah initiated coverage on Apple Inc. (NASDAQ:AAPLwith a Buy rating and a price target of $160, which represents a potential upside of 23% from where the stock is currently trading.

Baruah wrote, “Fundamentally speaking, we believe AAPL stands to deliver material EPS upside from 1) iPhone ships through ’17, 2) favorable GM from both iPhones and iPhone mix (more 6 Plus’ than realized), and 3) materially more Opex $ leverage through at least ’16 as AAPL realizes the benefits from the recent iPhone 6 and iWatch investment cycles. Additionally, we believe AAPL will continue to use capital return materially the next few years and that this can both catalyze and provide a floor under the stock. Our $160 TP is 14x our ’17 EPS estimate of $11.84.”

Furthermore, “AAPL reports the Mar Q today (4/27) AMC. We’re looking for revenue and EPS of $56.4B and $2.20 vs. Street of $55.6B and $2.13. Our stronger-than-Street estimates are driven by stronger iPhone shipments (we’re at 58M units, 3M more than Street), greater iPhone 6 Plus mix (we have 3M more units than Street, or 18M), the resultant stronger GM than Street (40.8% vs. Street at 39.4%), and also better Opex $ leverage (Opex % of revenue at 10.0% vs. Street at 9.8%).”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ananda Baruah has a total average return of 0.5% and a 47.7% success rate. Baruah is ranked #2151 out of 3581 analysts.