Peter Misek, an analyst with the global investment firm Jefferies hasn’t exactly been bullish on Apple lately. However, that no longer appears to be the case. The analyst now believes that Apple’s stock is a “buy” with a $600 price target. His change of heart is being attributed to Apple’s iPhone 6, which won’t even launch until late 2014.
According to Business Insider, Misek believes that the next iPhone will include a 4.8-inch screen. And, “as the bigger iPhone gets further into development, he expects investor enthusiasm.” The analyst also believes that Apple’s suppliers have become “far more lenient on price.” As a result, Cupertino’s gross margins could see a boost.
Misek thinks that over 50% of the smartphones sold today are bigger than 4-inches, the current size of the iPhone. Apple has been missing out on over half the market by not offering a bigger phone.
Misek isn’t completely sold on Apple, however. In particular, he is unimpressed with initial iPhone 5c sales and expects to see price cuts on the device soon to increase sales. Already, Walmart and Best Buy have dropped the price on Apple’s mid-priced iPhone model.
Previously, the Jefferies analyst rated Apple’s stock a “hold” with a $450 price target. Shares of Apple are trading at around $490.
See also: Apple’s Profit Margins Are Likely To Rise On The iPhone 5s And iPhone 5c, Report Claims That Apple Is Testing 13-Inch iPads, Bigger iPhones, and Before The Fireworks, Be Sure To Celebrate The Latest ‘iPhone 6′ Concept Design.