Cowen Upgrades Apple, Says Estimates 'have Bottomed'

Cowen upgraded shares of Apple Inc. to outperform from market perform and raised its price target on the stock Wednesday to $135 from $125. Analyst Timothy Arcuri said Apple estimates "have bottomed," and that the iPhone 7, expected to be unveiled in September, will help spur upgrades in the near term. "Street estimates finally look safe while [year-over-year] compares on iPhone units and overall Apple revenue are bottoming" and should turn flat as soon as the calendar fourth quarter, said Arcuri. Cowen also believes that Apple's potential adoption of OLED screens for new flagship phones starting in 2017 might help boost sales longer term. Shares of Apple rose 1.3% to $109.05 in premarket trade. They're down 14% from a year ago, versus a 2% decline for the Dow Jones Industrial Average.