High iPhone 6 Demand has RBC Raising its AAPL Target to $123

Demand for Apple's iPhone 6 and iPhone 6 Plus is still higher than RBC Capital analysts expected, so they're raising their target price for the company's stock from US$120 up to $123. The bump comes ahead of Apple's January 27 quarterly earnings report where iPhone sales figures are expected to be high thanks to holiday shoppers.

Apple's iPhone 6 has RBC excited about the company's stock valueRBC's Amit Daryanani thinks Apple will report shipping between 67 million and 68 million iPhones for the holiday quarter, and that the current quarter will see upwards of 50 million iPhones shipped. He also expects Apple to see more growth as more retailers and banks support Apple Pay, and when Apple Watch ships this spring.

Mr. Daryanani thinks 80 percent of Apple's iPhone sales will be made of of the 6 and 6 Plus models, which will help boost the company's bottom line. If he's right, that will show consumers were more interested in the newer—and higher priced—models during the holiday buying season.

Along with his $123 target price, Mr. Daryanani has an "Outperform" rating on Apple's stock. Apple is currently trading at $105.89, down 0.93 (0.87%).