An analyst from Morgan Stanley has issued a bullish prediction for Apple’s (AAPL) services growth based on the success of Apple TV+. In a note issued on Tuesday, Katy L Huberty, a Managing Director in Research, predicted that Apple’s services segment would grow to 20% of the company’s business thanks to the forthcoming streaming service.

“With an attractive price point at $4.99/month, and wide initial distribution to the Apple installed base via the bundled free year offer, we estimate Apple TV+ can become a $9B revenue business with 136M paid subscribers by FY25, assuming just 1 in every 10 Apple user pays for the Service by FY25,” Huberty said in her note, according to CNBC.

Huberty’s prediction is predicated on both the presumed success of Apple TV+ when it launches on Nov. 1 and on the belief that iPhone once again becomes strong in the near future.

Morgan Stanley has upped its target price for Apple stock from $247 to $289, the highest price amongst analysts watching the company.

Shares of Apple on Wednesday gained 3.22, or 1.34%, to close at $243.18

When it launches, Apple TV+ will feature an offering of original TV series and, eventually, films. These initial offerings include the sci-fi series “See” with Jason Mamoa and the TV news drama “The Morning Show” starring Reese Witherspoon and Jennifer Aniston. The service will cost $4.99 a month and a free year of the service will be bundled with all new Apple product purchases.

“With a growing list of catalysts, including accelerating Services growth and multiple expansion ahead of the 5G iPhone launch, and an attractive 8% total dividend + buyback yield, we continue to view Apple as our top pick into 2020,” Huberty further explained.

Apple CEO Tim Cook said that more content would be added to the company's television streaming service, dubbed TV+
Apple is reportedly planning to introduce bundling program, which is a great strategy to capture maximum consumer surplus. AFP / Josh Edelson