Apple Inc. (NASDAQ:AAPL) has enjoyed a fantastic first week of sales for its iPhone 7/7Plus and Watch Series 2 launches. In reaction, BMO Capital analyst Tim Long notes U.S. carrier commentary as “encouraging,” especially from T-Mobile and Sprint, and recognizes that the operators are promoting the newest iPhone far “more aggressively” than initially anticipated.

As such, Long reiterates an Outperform rating on shares of AAPL, while raising the price target from $116 to $140. The analyst also raises EPS estimates for the fiscal years 2016 and 2017 from $8.25 to $8.31 and from $9.13 to $9.24, respectively. Moreover, Long has upped iPhone and watch unit projections for both September and December quarters.

Long explains, “We update our views on Apple based on the first week of pre-sales for the iPhone 7/7 Plus, and Watch Series 2. We also update our iPhone installed base analysis, and take a deeper look at the Services revenue line by estimating revenue by major contributing line item (i.e., App Store, iTunes, etc.).”

Additionally, Long expects great success for the upcoming quarters for AAPL’s new Watch Series 2, thanks to the upgrade to a GPS, a screen that shines that much brighter, speedy processor, and enhanced waterproofing.

“The stock has worked well since the launch last week, and we expect strong demand to push estimates and the stock price higher,” the analyst concludes.

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, four-star analyst Tim Long is ranked #560 out of 4,158 analysts. Long has a 58% success rate and yields 6.0% in his annual returns. When recommending AAPL, Long earns 12.0% in average profits on the stock.

TipRanks analytics exhibit AAPL as a Strong Buy. Based on 35 analysts polled in the last 3 months, 30 rate a Buy on AAPl, 4 maintain a Hold, while 1 issues a Sell. The 12-month price target stands at $125.73, marking a nearly 9% upside from where the shares last closed.