Investing.com -- UBS has raised its Apple price target to $287 from $280 per share ahead of the company's quarterly earnings report, citing iPhone market share gains driven by rising memory prices that are squeezing Android competitors.

The bank maintained a Neutral rating on Apple, saying it expects a slight beat for the March quarter, projecting revenue of $109 billion against a VA consensus of $109.3 billion, with modest upside driven primarily by iPhone and Mac demand.

UBS forecasts iPhone revenue of $56.2 billion for the quarter, with supply chain checks and sell-through data pointing to modest outperformance.

On Services, UBS does not expect upside to its roughly 14% revenue growth forecast, noting that "strength in payments is offset by muted growth in the App Store."

The firm forecasts consolidated gross margin of 48.5% and diluted EPS a few cents above its $1.94 estimate.

The more significant revision is said to concern the June quarter outlook. UBS raised its June revenue forecast by approximately 4% to $102 billion, implying 8.5% year-over-year growth, as "memory driven share gains" prompt the bank to lift its iPhone unit forecast to 50.3 million from 46.5 million.

UBS sees Apple taking share from Android devices in key markets, including China and Europe.

On gross margin, UBS flagged that higher memory costs will pressure product margins both sequentially and year-over-year, guiding to a June gross margin range of 47% to 48%. The bank raised its June quarter EPS estimate by approximately 7% to $1.70.