Cowen upgrades Apple to 'outperform,' envisions OLED iPhones with new form factors

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in AAPL Investors
Cowen and Company upgraded its outlook on AAPL stock to "outperform" on Wednesday with a $135 price target, telling investors it believes Apple will return to growth with this fall's "iPhone 7" and beyond.


iPhone concept by Martin Hajek.


Analyst Timothy Arcuri and his team have been on the sidelines with Apple since mid-2015. But this week, they became buyers once again, citing the anticipated September debut of a next-generation iPhone.

Even if the "iPhone 7" is only "evolutionary," Arcuri believes Apple could benefit from iPhone 6 and iPhone 6 Plus buyers who may be ready to upgrade their two-year-old phones.

Arcuri was also encouraged by this week's rumor that Apple is working on a new iPhone design with a 5.8-inch AMOLED display that could arrive as soon as 2017. To him, adopting OLED in 2017 could solve "growth concerns" for Apple, and also allow the company to create iPhones with new form factors, such as edge-to-edge displays.




"Flex OLED gives AAPL a key new degree of freedom on product design, while '17 adoption provides a 'bridge' to a new cycle of innovation that should accelerate in '18 and beyond," Arcuri wrote.

Finally, he also noted that shares of AAPL still trade at about a 25 percent discount when compared to large-cap technology peers, and a 30 percent discount when contrasted with the S&P 500. The current valuation, to him, provides a "solid backstop" for the company, which he believes should give investors the confidence to buy in.

Comments

  • Reply 1 of 11
    pmzpmz Posts: 3,433member
    That concept gives hideous new meaning.
  • Reply 2 of 11
    irelandireland Posts: 17,522member
    He envisions based on rumours. Interesting.
  • Reply 3 of 11
    Looking forward to the iPhone version that has the integrated TouchID and gives me a 4.7" screen on a device the size of an iPhone SE.  If we get rid of all the bezel, I believe it fits.  

    I just don't know how they replace the metal ring around the touch ID to wake the phone.  Perhaps they will use the 3D Touch to support that aspect.  


    Then I'd get a phone that fits in my pocket and has the screen size I'd prefer and I can use it one-handed.  Perfect iPhone 7 design IMHO.
  • Reply 4 of 11
    Put the TouchID pad on the back where the Apple logo is. I like the full screen concept except for this problem
  • Reply 5 of 11
    thedbathedba Posts: 470member
    jjfergie said:
    Put the TouchID pad on the back where the Apple logo is. I like the full screen concept except for this problem
    Personally, I think this is a terrible idea. 
    Let Android manufacturers keep on placing it at that ergonomic nightmare spot. 
    bobschlob
  • Reply 6 of 11
    schlackschlack Posts: 679member
    what a loser, totally focusing on the wrong stuff. OLED will not drive growth per se. Nothing crazy unique about the iPhone 7. This is just the normal dev cycle that Apple pushes. The iPhone SE will drive growth though, as well as a new Apple Watch.
  • Reply 7 of 11
    fallenjtfallenjt Posts: 3,961member
    jjfergie said:
    Put the TouchID pad on the back where the Apple logo is. I like the full screen concept except for this problem
    Lol...bad design just like android phone...how can you place your phone on a surface and unlock the device?
  • Reply 8 of 11
    fallenjtfallenjt Posts: 3,961member
    Looking at that full screen concept, I want to throw up. I can see the smaller Home button to be implemented since Touch ID sensor is super fast now and doesn't need current size of Home button to read the print. So, smaller Home button -> smaller bezel (1-2mm thinner) -> a little larger screen (really insignificant .3"?). However, I don't see on-screen Home button on near future iPhone, maybe not at all. 
    edited March 2016
  • Reply 9 of 11
    scxfanscxfan Posts: 8member
    ireland said:
    He envisions based on rumours. Interesting.
    You should be wanting AMOLED.

    Its good.
  • Reply 10 of 11
    igorskyigorsky Posts: 422member
    The home button is going the way of the Dodo. No better evidence than the 3D Touch swipe right gesture that takes you to the springboard on the 6S. I believe they also have a patent for an embedded fingerprint reader.
  • Reply 11 of 11
    scxfanscxfan Posts: 8member
    Home button got to go so they can make the physical size of the phone.

    Right now, thiness is all that Apple cres about.
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