Apple reached a 14-month high on Wednesday morning, ticking to $120.48 per share.
The early gains followed a note distributed to clients by Cowen and Company which suggested Apple's next iPhone, slated to launch in September, could include some form of facial/gesture recognition.
Apple CEO Tim Cook has talked about his company's interest in augmented reality technology in public several times in the past year. Apple is integrating its augmented reality technology into the iPhone's camera, and faces will be one of the first things its technology should be able to recognize, Business Insider previously reported.
On Tuesday, Morgan Stanley cut Apple estimates and predicted an iPhone 7 sales slump for 2017. However, the firm still gave Apple an "overweight" rating and a price target of $148.
Apple has faced three straight quarters of revenue declines. The quarter ending in December is usually Apple's largest by far, thanks to holiday shoppers. Apple reports its holiday quarter earnings on January 31.
Since the morning's high, the stock has been ticking down.
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