NEW YORK (TheStreet) -- Andy Hargreaves at Pacific Crest has upgraded Apple (AAPL) to "outperform" from "sector perform" and given it a price target of $635. This rating comes on speculation that Apple will release the next iteration of its popular iPhone series, iPhone 6, in the fall and will give the phone a with-contract price point of $299 -- $100 more than what it currently charges for the iPhone 5 series.
The iPhone 6 is expected to have a 4.7 inch screen, 0.7 inches larger than iPhone 5s screen. This jump in screen size is expected to attract a lot of Apple consumers who would like to upgrade their phone. The screen size on the iPhone's main rival -- Samsung's Galaxy S series -- has long dwarfed the more sleek iPhone model. A potential screen size increase would be the latest salvo in the smartphone war between the two tech companies.
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Hargreaves pointed to the failure of the iPhone 5c as an indicator that Apple enthusiasts would not mind paying $100 extra for a superior product. Apple released the 5s at a $200 price point and the 5c at $100 at the same time last year. The 5s took off despite the higher price while the 5c sat on store shelves.
Apple was up 0.14% to $538.82 today at 11:22 a.m.
TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: