Analysts say iPhone Air is underestimated.

Market research firm Melius Research analyst Ben Reitzes said that after the iPhone event, Apple has officially "emerged from the doldrums" and is prepared for higher revenue. He reiterated his buy rating on Apple and raised the stock target price from $260 to $290, the highest among analysts surveyed by FactSet. He specifically pointed out that the iPhone Air may drive a larger-than-expected upgrade cycle, especially in the Chinese market. Reitzes believes that the design of the iPhone Air will be more attractive in China. Overall, analysts believe that the iPhone Air could stimulate a significant amount of upgrades, boosting Apple's sales during the key holiday shopping season. Morgan Stanley analysts said in a report, "The appearance and features of the iPhone Air have left a more profound impression on us than expected, and it can be seen that this device will help increase iPhone upgrade rates over the next 12 months." PP Foresight analyst Paolo Pescatore also said, "I believe that in this era of highly similar products, it is a good thing to see Apple launching a new product. This somewhat revitalizes the entire iPhone market."