FBR Capital analyst Daniel Ives came out with a research report on Apple Inc. (NASDAQ:AAPL) ahead of the company’s official launch of Apple Music on June 30 at 11AM. The analyst maintained an Outperform rating on the stock with a price target of $185, which implies an upside of 48.6% from current levels.

Ives views streaming music as the tip of the iceberg for the technology giant, as it will be able to prove the merits of its Beats acquisition and expand its opportunity and market share into the music streaming market. He believes that Apple music will compete with Spotify and thus “build a moat around the all-important iTunes franchise.” Furthermore, the analyst notes that Apple will most likely continue down the streaming service path by ironing out the TV streaming service kinks.

“Overall, although Apple remains laser-focused on strong iPhone 6/China hyper growth in the near term, we believe that its next-generation services fit well into its device/service ecosystem, with streaming music representing a natural evolution from the massively successful iTunes platform, as the “name of the game” for Apple around music is expanding its tentacles further into the consumer world and helping build out a broader stream of content (e.g., TV streaming) down the road.”, the analyst concluded.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Daniel Ives has a total average return of 8.1% and a 57.9% success rate. Ives has an -2.2% average return when recommending AAPL, and is ranked #508 out of 3684 analysts.