Pac Crest upgrades Apple on iPhone 6 hopes

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

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Comments (18)
  • madbcolumbus
    , contributor
    Comments (194) | Send Message
    An upgrade that actually boosted the stock price?!
    11 Mar 2014, 09:43 AM Reply Like
  • Gary J
    , contributor
    Comments (11480) | Send Message
    "Hargreaves downgraded Apple on Jan. 16, 2013; when shares were at $471."


    So we should pay attention now why?
    11 Mar 2014, 09:47 AM Reply Like
  • 9988771
    , contributor
    Comments (4) | Send Message
    Why aren't analysts allowed to change opinions when new information becomes known?
    11 Mar 2014, 10:24 AM Reply Like
  • Warren Buffett007
    , contributor
    Comments (1132) | Send Message
    Better not!
    11 Mar 2014, 03:21 PM Reply Like
  • JG2000
    , contributor
    Comments (493) | Send Message
    Perhaps because converting a bear who becomes a bull based on specific anticipated future events has a special credibility that may be lacking in analysts with a more consistent but doctrinaire approach. His track record and logic of his argument both matter too, of course, so you get to decide what is relevant.
    11 Mar 2014, 05:59 PM Reply Like
  • Rayzz1001
    , contributor
    Comment (1) | Send Message
    Apple dropped to below 400 in April 2013.
    11 Mar 2014, 06:13 PM Reply Like
  • lost money
    , contributor
    Comments (261) | Send Message
    this upgrade should give Apple stock atleast $30 extra in value...but this is a strange market that rewards failure and continues to punish Apple.. may be a reverse split of 1 to 10 is wise at this point.
    11 Mar 2014, 09:48 AM Reply Like
  • Gordon_Gekko90292
    , contributor
    Comments (6) | Send Message
    A reverse split would be 10 to 1, not 1 to 10. That's why it's a reverse, instead of increasing shares, you decrease shares and increase per share price.


    What I believe you suggest is a straight stock split. Which is more shares for lower per share prices.
    11 Mar 2014, 11:29 PM Reply Like
  • 2ng
    , contributor
    Comments (219) | Send Message
    hey boys sell at 471 and buy at 535. BTW I agree on the upgrade
    11 Mar 2014, 09:48 AM Reply Like
  • Arthur Fisher
    , contributor
    Comments (362) | Send Message
    His employer and clients must be delighted with the news.
    11 Mar 2014, 10:46 AM Reply Like
  • canuck671
    , contributor
    Comments (55) | Send Message
    What is going to be the reason to buy? Is there something better or different about the latest iphone?
    11 Mar 2014, 10:47 AM Reply Like
  • Constable Odo
    , contributor
    Comments (610) | Send Message
    It will be bigger, faster and newer. Just like any other new smartphone you can care to name. No, it won't be loaded with innovation like everyone is hoping. There isn't really much more any company can do with a smartphone except take evolutionary steps. That will still be enough for consumers to buy an iPhone.
    11 Mar 2014, 11:31 AM Reply Like
  • cshoxie
    , contributor
    Comments (364) | Send Message
    Yup, "enough for consumers to buy" but not enough to move the stock price for more than 24hrs.
    11 Mar 2014, 01:25 PM Reply Like
  • Warren Buffett007
    , contributor
    Comments (1132) | Send Message
    Each time it costs more to sell the old previous iphone to buy a new model!!.
    11 Mar 2014, 03:23 PM Reply Like
  • gelstretch
    , contributor
    Comments (3505) | Send Message
    This game plays on in perpetuity....this summer he will likely structure a downgrade, just to keep the bouncing ball in motion.
    11 Mar 2014, 12:37 PM Reply Like
  • ispank
    , contributor
    Comments (1148) | Send Message
    The next iPhone 6 would be able to cough out GOLD and DOLLAR. Expecting the long line of consumers. That's everyone expect from Apple new magic innovation.
    11 Mar 2014, 12:38 PM Reply Like
  • macmanud
    , contributor
    Comments (67) | Send Message
    Lets just throw out random numbers...
    11 Mar 2014, 12:43 PM Reply Like
  • ultraz2
    , contributor
    Comments (1107) | Send Message
    An analyst that see the glass half full and rising. GO APPLE
    11 Mar 2014, 04:26 PM Reply Like
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