Analysts at Goldman Sachs expect Apple Inc (AAPL  ) to beat the $1.19 consensus earnings per share forecast with an EPS of $1.21 when the company issues earnings on Aug. 3, based on the strong performance of Mac and Services.

The Apple Analyst: Michael Ng reiterated a Buy rating on the Cupertino, California-based tech giant, and set a 12-month price target of $222 on the stock.

The Apple Takeaways: Ng said Goldman's Mac revenue forecast of $9.4 billion will come in significantly higher than FactSet's consensus Mac revenue of $6.3 billion. Goldman's projection is substantiated by recent International Data Corporation estimates showing a year-over-year increase of 10% in Mac units.

More on revenue beats, Goldman said it expects Services revenue to hit $21.8 billion - an 11% year-over-year growth - which would come ahead of the consensus $20.7 billion estimate.

The analyst said expected Services growth is attributed to a surge in App Store spending, growth in advertising, continuous content investments in AppleTV and a more benign foreign exchange headwind.

Ng acknowledged concerns around valuation and downside risks due to shares of Apple being up 48% year-to-date, fueled entirely by multiple expansion. The analyst remained positive, emphasizing the growing iPhone installed base is a cornerstone for increasing monetization per user and supports Apple's premium valuation.

AAPL Price Action: Shares of Apple are trading 0.61% higher to $193.97, according to data from Benzinga Pro.