Bernstein Research had an AAPL price target of $615 per share. The firm has now raised its AAPL price target to $700 per share. According to Toni Sacconaghi, a Bernstein analysts, the firm is increasing its AAPL price target based on an anticipated surge in iPhone upgrades when the new models launch, MarketWatch notes.
Apple is expected to launch two iPhone 6 models later this year. One model is rumored to have a 4.7-inch screen, while the other takes a step into phablet territory, sporting a 5.5-inch screen. The current iPhone 5s has a 4-inch screen, smaller than many rival smartphones on the market.
“We believe investor anticipation of the iPhone 6 will be high because a new larger form factor could stimulate an accelerated replacement cycle and switching from Android users who value a large screen,” Sacconaghi wrote in a research note. He added that Apple may charge more for the larger iPhone, increasing revenue growth.
In Thursday morning trading, AAPL shares rose about 1%. Apple stock closed at $624.01 per share on Wednesday.
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