's (NASDAQ: AAPL) stock recently received a pair of price target hikes. An analyst at Piper Sandler raised its target to $225 per share from $190, while an analyst at Needham took a more aggressive view and raised the target to $260.

The Needham analyst likes Apple's $110 billion stock buyback plan and believes it supports the share price. Meanwhile, the Piper Sandler analyst argues Apple's stock is riding a wave of optimism over the possibility of a bounce back in growth in iPhone sales in China, and the potential for artificial intelligence (AI) applications that could lead to an upgrade cycle in iPhones.

Apple's revenue mix is changing, with its higher-margin services revenue (roughly double the gross margin of its product revenue gross margin of around 37%) representing 26.3% of revenue in the most recent quarter compared to 17.8% in 2019. Its service revenue growth is a function of growing subscriptions within its installed base of devices, which number more than 2.2 billion.

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Source Fool.com