- Pac Crest's Andy Hargreaves has upgraded Apple (AAPL) to Outperform, and set a $635 PT. He thinks a 4.7" iPhone 6 will arrive in the fall (in-line with reports), and that a base model will sell for a relatively steep subsidized price of $299; that could imply an unsubsidized price of $749.
- Hargreaves estimates a 4.7" iPhone could boost the iPhone's total FY15 (ends in Sep.) unit sales by 10M to 170.4M, while lifting its ASP by $36 to $641 and its EPS contribution by $4 to $33.04.
- He isn't counting on a 5.5" iPhone (also rumored to be in the pipeline) arriving this year. At the same time, he thinks new product launches (an iWatch?) provide "optionality" to Apple shares.
- Hargreaves downgraded Apple on Jan. 16, 2013, when shares were at $471.
- AAPL +0.8% premarket