Goldman lifts Apple target price ahead of $1,000 iPhone

Goldman Sachs lifted its target price on Apple's shares on expectations the company will launch a superpremium smartphone in September - with a price tag of $1,000.

If proved correct, the new target price would equate to a market capitalisation of almost $900bn for the Cupertino, California-based firm.

Analyst Simona Jankowski raised her target from $164 to $170 and reiterated her 'buy' recommendation on the stock.

Shares of Apple however were lower as of 1739 BST, slipping 0.47% to $155.19.

Jankowski expected Apple would release its new iPhone in September, helping to drive improved average selling prices and gross margins, alongside another two models.

The new ultra-premium model would sport a 5.8-inch screen including new features such as 3-D sensing.

Goldman expected higher average selling prices to be the main driver of its higher earnings estimates for Apple and not sales volumes.

The investment bank penciled in a 2018 ASP of $763, versus $645 in 2016.

"The next iPhone is shaping up to be the most anticipated iPhone since the launch of the iPhone 6 in September 2014," the analyst said.