Apple (NASDAQ:AAPL) recently crossed the finish line in the race to a $1 trillion market cap, but it hasn’t stopped running yet. AAPL stock is up 13% since last week’s earnings. And this morning, GBH Insights released a note increasing its price target on AAPL stock from $215 to $245 — representing 13.4% upside from AAPL’s current prices.

In its note, Daniel Ives of GBH Tech Research was extremely optimistic toward the sales of the next generation of iPhones and its effect on Apple’s rapidly growing Services segment. Basically, this iPhone generation could be the next big catalyst for AAPL stock.

Despite the Street predicting roughly 220 million iPhones sold when the next generation is released, GBH believes the demand far exceeds that. Just looking at existing iPhones, GBH models that 350 million are in the “window of opportunity to upgrade over the next 12 to 18 months.”

GBH also looks to China as a major growth area for Apple. Of the 100 million iPhones currently in the country, GBH estimates between 60 and 70 million will be in the “upgrade window” for the next-generation iPhone release.

GBH expects the release of three iPhones — including a lower-priced LCD model — over the next 2-4 months. The note stated that “iPhone’s next generation trifecta” could be a major catalyst in China, even triggering what GBH called a “renaissance of growth” in the world’s largest market.

Trade tensions between the U.S. and China linger, however, and GBH believes this is the thing to watch in regards to future iPhone sales over the next six-to-eight weeks, as any disruption in Apple’s supply chain could harm the upgrade cycle.

GBH went on to say that this upgrade cycle could further invigorate the already booming Services segment. Between iCloud, Apple Pay, Apple Music and other digital software downloads, GBH predicts the Services segment topping $50 billion in revenue by fiscal 2020.

As of this writing, Regina Borsellino held no positions in the aforementioned securities.