5 reasons Apple is going to soar in 2017, according to Citi

Apple (AAPL) shares can rally in 2017 for five reasons, according to Citi Research, which reiterated its buy rating on the company.

Analyst Jim Suva gave the following list in a note to clients Tuesday:

1. "iPhone 8 Super Upgrade Cycle driven by newer form factors driving a stronger upgrade relative to the prior 2 cycles"
2. "Tax reform benefit from reduction in corporate taxes and cash repatriation"
3. "Sticky user base which drives continued services revenue growth"
4. "Enterprise push mid term, Applewood longer term"
5. "Attractive valuation – Shares trade at a slight discount to their 4 year median multiples despite improving fundamentals ahead"

Apple shares are underperforming the market in 2016 up 7.6 percent, compared to a 10.4 percent gain for the S&P 500.

Suva reiterated his Apple price target of $130, representing 15 percent upside from Monday's close.

He cited how Trump's proposal to lower the U.S. corporate tax rate to 15 percent from 35 percent would add 6 percent to Apple's earnings-per-share. Suva said if the company used 25 percent of any repatriation tax holiday proceeds for a stock buyback, it could benefit earnings-per-share by an additional 10 percent.

"Across our coverage universe, we see Apple as a significant beneficiary of Trump tax reforms. Apple is very well positioned to benefit from potential tax reform of either or both a repatriation tax holiday and or a lower corporate tax rate," stated the note.

The analyst predicts iPhone shipments will rise 7 percent in the company's fiscal year 2018.

"We believe iPhone installed base upgrades will take a step up with the launch of iPhone 8," Suva wrote.

Apple CEO Tim Cook will be among a group of technology executives that will meeting with President-elect Donald Trump Wednesday.