Apple Inc. (NASDAQ:AAPL) has taken a big bite out of the premium-tier global smartphone market during its second-quarter, capturing a strong 75% of industry profits. Canaccord top analyst Michael Walkley remains positive that iPhone products, including the imminent launch of the iPhone 7 will allow the tech giant to maintain strong share of the premium tier smartphone market, as well as overall industry profits.

Though Apple continues to generate strong profit share, profits have fallen from over 90% in the first quarter, a dip Walkley attributes to Samsung, AAPL’s worthy competitor. Samsung has streamlined product lines and benefits from strong demand for the Galaxy S7. Recent U.S. Surveys have revealed Samsung topping Apple in third-quarter with stronger high-end sales. Samsung has strategically maximized that consumers are delaying iPhone purchases as they wait for the iPhone 7 to launch, subsequently upping advertising and promotional activities in a major way.

However, Walkley’s analysis finds that the iPhone install base shot past 500 million exiting C2015 with overall connected Apple devices rising over one billion users.

Recommended article: Apple Losing Ground In Two Big Markets

Walkley concludes, “This impressive installed base should drive strong future iPhone replacement sales and earnings, as well as cash flow generation to fund strong long-term capital returns programs of $250B through F2018. However, we anticipate a stronger upgrade cycle in C2018 with the 10-year anniversary iPhone versus our modest expectations for the iPhone 7. While near-term trends and macro conditions remain soft, we anticipate a return to growth in Q2/F2017 and reiterate our BUY rating and $120 price target.”

Walkley reiterates a Buy rating on shares of AAPL with a $120 price target, which represents almost an 11% increase from where the shares last closed.

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star analyst Michael Walkley has achieved a high ranking of #27 out of 4,122 analysts. Walkley upholds a 61% success rate and yields 14.7% in his yearly returns. When recommending AAPL, Walkley earns 23.0% in average profits on the stock.

TipRanks analytics exhibit AAPL as a Strong Buy. Based on 37 analysts polled in the last 3 months, 32 rate a Buy on AAPL, 4 maintain a Hold, while 1 issues a Sell. The 12-month average price target stands at $125.63, marking just under a 16% upside from where the stock is currently trading.Screen Shot 08-23-16 at 01.15 PM