Apple (AAPL) is likely to keep the smartphone market share it took from Samsung in the past year thanks to Apple's sticky ecosystem and excitement for its upcoming iPhone 8, Canaccord Genuity analyst Michael Walkley said in a report Friday.
Walkley reiterated his buy rating on Apple stock and raised his price target to 165 from 154.
Apple shares closed down 0.2% at 143.66 on the stock market today. The stock hit an all-time high of 144.50 on Thursday, its third record high in three days. Apple is a component of the Dow Jones industrial average.
Walkley made his bullish call on Apple two days after rival Samsung unveiled its next generation smartphone, the Galaxy S8.
"Given our expectations for compelling new features and form factors for the iPhone 8 products, we are raising our estimates," Walkley said. He expects the new handsets to lead to stronger upgrade sales to the loyal iPhone customer base.
Apple expanded its smartphone market share last year thanks to its iPhone 7 series devices and a response to Samsung's recall of its fire-prone Note 7 phablet.
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He estimates that Apple ended calendar 2016 with an iPhone-installed base of over 570 million users.
This growing installed base also has boosted Apple's services business, which includes the App Store, Apple Music, Apple Pay, iCloud and other offerings, Walkley said.
Walkley does not see Samsung's Galaxy S8 as much of a threat to Apple.
"While the Galaxy S8 launch increases near-term iPhone premium-tier competition, we believe it will not lead to the loyal iPhone base switching," Walkley said.
The Galaxy S8 will prove most popular with users of Android phones, he said. Alphabet (GOOGL)-owned Google makes the Android operating system.