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. We have already seen a few early reports that suggest Apple will finally make the move to a larger display in next year s iPhone 6, and now another report from a well-respected source suggests Apple is indeed finally getting ready to satisfy critics and launch a smartphone with a larger screen. Also Read - Apple releases important iOS 14.7.1 update: iPhone users must download it right now
Jefferies & Co. analyst Peter Misek on Monday issued a research note to investors in which he reversed course on Apple. Misek previously had a Hold rating on Apple shares with a $450 price target, but he s 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 seeing risk to CQ4 and FY13 revs, we now believe better [gross margins] will allow 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 analysts covering Apple right now. That certainly doesn t make an iPhone 6 with a 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.