Morgan Stanley’s Katy Huberty announced Tuesday that she has raised funds. AppleThe price target was raised from $164-$200 and the buy rating maintained. This is because new Apple products, such as an augmented reality headset, or self driving car are not yet baked in to the share price.

Apple’s shares were 2.3% higher in premarket trades

Huberty increased her December quarter iPhone shipment estimates by 3,000,000 units to 83,000,000 units. This is a 4 percent increase year-overyear. Huberty said that Apple has not faced the same supply restrictions as in September quarter. App Store revenues are also expected to exceed initial estimates.

“Today, we know that Apple is working on products to address two significantly large markets – AR/VR and Autonomous Vehicles – and as we get closer to these products becoming a reality, we believe valuation would need to reflect the optionality of these future opportunities,” Huberty said in the note.

According to the note, Apple’s stock prices have increased by nearly 500% in five years. This is due in large part to new services and products. Not from iPhone revenues, which have grown by 40%. Huberty noted that Apple’s service business has grown to $70billion annually while its accessories and wearables businesses contribute $38billion annually.

Huberty claimed that Apple’s revenue has increased by 6% over five years due to new products, such as the Apple Watch, AirPods, and Apple Watch. This was not possible five years ago. New products such as an AR headset could be as important to Apple’s revenue growth as did the iPad in the first four years. This would translate to a roughly $20 per share increase in Apple’s share price, in addition to Morgan Stanley’s growth forecasts.

In the meantime, unconfirmed reportDigiTimes, a Taiwanese trade magazine, reported Monday that Apple intends to double iPhone production in 2022’s first half. Apple Suppliers Shares Qualcomm MicronAlso Tuesday saw an increase in sales. This is in contrast to a last week report from BloombergApple also warned that iPhone demand would be lower heading into this holiday season.