“Tech stocks began to show some signs of life Tuesday, with Apple Inc. and Facebook Inc. among the gainers following new, upbeat views from Wall Street analysts,” Rex Crum reports for MarketWatch.
“Apple rose 1.4% to $538.21 after Andy Hargreaves of Pacific Crest Securities raised his rating on the company to outperform, or the equivalent of buy, from sector perform and set a price target of $635 a share on Apple’s stock,” Crum reports. “In a research note, Hargreaves based much of his upgrade on prospects for iPhone sales and the next model of the iPhone, which is likely to come out later this year.”
Crum reports, “Hargreaves said a larger-screen version of the so-called iPhone 6 is ‘likely to drive estimates higher’ for Apple, and could add as much as $4 a share to the company’s per-share earnings in its 2015 fiscal year ‘if 35% of iPhone customers choose a larger iPhone when they upgrade and Apple is able to capture 10% of the large-format Android market.'”
Read more in the full article here.
MacDailyNews Take: If Apple only captures 10% of the large-format Android market, they’ll have screwed up royally. Of the rather confused fragmandroid settlers we’ve randomly asked, “Why did you choose that phone?” at least 1 in 3 reply with some variation of “I only got it because Apple doesn’t offer bigger iPhones.”
Yes, I hate iOS 7, yes the 7.1 update was a disappointment, BUT until someone manages to outdo Apple I’m looking forward to a larger screen iPhone.
Hopefully also we’ll get some more UI flexibility in iOS 8 too.
MDN, my take exactly. ONLY 10%?
How about the profit margin ? Will Apple earn less while selling more can’t help ?
The upgrade to outperform is a good thing, especially since it wasn’t done on the supposition that there would be a larger iPhone. They trust the Apple of next quarter and beyond.