Goldman Sachs Group Inc. is recommending buying Apple Inc. shares for the first time in nearly six years, after being mostly on the sidelines as the iPhone maker’s stock more than quadrupled in value.

Analyst Michael Ng just took over coverage of the company, whose large user base he says will help the iPhone maker grow its services business.

(Bloomberg graphic)

“Apple’s success in premier hardware design and resulting brand loyalty has led to a growing installed base of users,” said Ng, who is the third Goldman analyst to cover the stock in six years, according to data compiled by Bloomberg. This helps the company reduce the number of users leaving the ecosystem, lowers client acquisition costs and encourages customers to repeat purchases, he wrote in a note.

The Cupertino, California-based company’s stock was rated neutral or sell under Ng’s predecessor Rod Hall, who covered the company for nearly five years. Apple has rallied more than 300% since Goldman last had a buy-equivalent recommendation in 2017. The bank didn’t immediately respond to a request for comment on the rating history.

Goldman’s new price target of $199 implies 32% upside from the stock’s last close and is clearly above the average of $169.61. Apple shares rose 2.4%, extending their gains for a third consecutive session.

This article was provided by Bloomberg News.