With the iPhone 5s to launch later this month,industry watchers are now turning up the heat as they sniff around for details on next year's iPhone 6, and now another report from a well-respected source suggests Apple is indeed is finally getting ready to satisfy critics and launch a smartphone with a larger screen.
Jefferies and co, analyst Peter Misek on Monday issued a research note to investors in which he reserved course on Apple. Misek previously had a Hold rating on Apple shares with a $450 price target, but he is now bullish on Apple's prospects. As a result, Misek upped his target to $600 on Monday morning and slapped a buy rating on Apple's stock.
There are a few reasons for the analyst's change of heart, one of which is that his supply chain sources indicate that Apple is getting more favorable prices from its component suppliers. This is a change from Misek's position earlier this year and if accurate.It would obviously boost Apple's bottom line. Beyond margins,however the analyst says Apple is finally going to cave and launch an iPhone 6 with a bigger display.
Despite still seeking risk to CQ4 and FY13 revs, we now believe better gross margins will Apple to skate by until iPhone 6 launches with its 4.8 screen, Misek wrote in the note. We est 50% of smartphone shipments have 4 screens and that iPhone 6 will catalyze a large upgrade cycle. The stock is attractive based on the attitude change, FY15 revs +15% and valuation.
Misek has had a few good calls regarding unreleased Apple products in the past and he is considered by many to be among the top analyst covering Apple right now. That certainly doesn't make an iPhone 6 with 4.8 inch display a done deal, but it adds fuel to earlier reports from The Wall Street Journal and plugged in KGI securities analyst Ming-chi kuo.
Apple shares jumped more than 1% on Misek's report.
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