Ahead of Apple Inc. (NASDAQ:AAPL)’s earnings on Tuesday, July 26, Wells Fargo analyst Maynard Um weighed in on the stock with a bullish stance. The risk/reward associated with investing in Apple at this time is attractive to the analyst and he believes that low expectations will make the company’s earnings estimates easier to beat.

The analyst upholds that supply chain expectations could be beat upon the company’s earnings release on July 26. This belief comes as the analyst notes that Apple build orders are not typically over conservative. In addition, the analyst believes that limited iPhone 7 form factor change could alleviate cyclical decline in Apple’s gross margins.

Um affirms that carrier competition should help drive iPhone sales as two year contracts begin to expire and come up for renewal. The analyst notes, “Both the 6s and 5s had roughly 172k units per carrier in their respective first December quarters vs the 6 at approximately 195k and 5 at 181k. Assuming an average between 5 and 5s/6s of 177k, we arrive at 77.5MM units, above Street’s 75.0MM.”

The analyst’s overall investment thesis hangs on increased iPhone unit movement, which he believes could increase year-over-year in December 2016. He concludes that the risk/reward is positive for AAPL.

Um reiterates an Outperform rating for AAPL with a valuation range of $115.00 to $125.00.

According to TipRanks, Maynard Um is ranked #182 of 4,057 analysts on TipRanks. He retains a success rate of 63% and realizes an average return of 13.3%. When rating AAPL, the analyst maintains a 69% success rate and an average profit of 18.7%.

Overall, Apple is rated as a Buy with a consensus target price of $123.76, marking a 24% upside from current levels. Currently, 85% of analysts issue a Buy rating for AAPL, 13% maintain a Hold rating, and 2% uphold a Sell rating for the stock.