These Analysts Call The Apple Watch An 'Object Of Utility, Affection And Luxury'

Oppenheimer commented on the Apple Inc. AAPL Watch on Tuesday. The firm also raised its price target from $130 to $155 and maintained an Outperform rating on the stock.

See Also: Oppenheimer: Apple Watch Will Lead Sales, Price Higher

Analysts Andrew Uerkwitz and Martin Yang explained the firm's understanding and expectations for Apple's new product in a research note.

Overall, the analysts were "very optimistic" and thought the Apple Watch would be "an object of utility, affection, and luxury that represents the next step in our ‘mobile first' future."

The analysts acknowledged that "Apple is shackled" with with same battery and chip limitations as other manufacturers. However, there was an area where Apple held an advantage.

Uerkwitz highlighted that a "better interface always wins" and understanding how humans interact with technology was Apple's "core competency" which was expected to make the Watch "more feature-rich, user-friendly, and elegant than the competition."

With the concept of the interface in mind, the analysts also cited a quote from Steve Jobs in which he told CNNMoney/Fortune in 2000, "Design is the fundamental soul of a man-made creation that ends up expressing itself in successive outer layers of the product or service."

The watch's elegant design was expected to drive a high profit margin that would reflect its "efficient extension of the smartphone" and its ability to facilitate "intimate personal communications," according to the analysts.

Looking at risks, Uerkwitz noted that lower than expected iPhone demand, Watch margins, and FX could impact the firm's investment thesis.

Apple recently traded at $128.93, down 0.12 percent.