UPDATE: Barclays Upgrades Apple (AAPL) to Overweight

(Updated - July 14, 2014 9:30 AM EDT)

Barclays upgraded Apple (NASDAQ: AAPL) from Equalweight to Overweight with a price target of $110.00 (from $95.00). Analyst Ben A. Reitzes said new product checks were strong and he thinks trouble at Samsung opens up an opportunity for Apple to regain share.

"A move is needed given a few big changes since March vs. our expectations. We believe Tim Cook has solidified his strategy and re-gained the confidence of Apple stakeholders in many ways – reversing many of the warning signs we saw earlier in the year. Second, Samsung’s weakness creates a large unforeseen buffer. Third, our checks around new products (builds, demand & quality) into 2015 are so strong, we are compelled to get on board even if its midway through the rebound trade," said Reitzes. "Even the March and June upside we have seen change the outcomes for iPhone’s growth trajectory and brand appeal. We can't help feeling the right analogy from a stock standpoint is to compare Apple of 2014 to Google and acknowledge the market wants and needs to own this bellwether into the end of CY14 and into 1H15."

"Looking short term, our checks point to earnings and revenues ahead of consensus; troubles at Samsung are opening up an opportunity for Apple to regain share, not only near term but possibly long term. We are raising our June quarter estimates to $38.33 billion in revenues (consensus $37.85 billion) in F3Q and EPS of $1.24 (consensus $1.22). For the June quarter, we are raising our iPhone unit sales to 37 million vs. 35 million previously. For full-year FY14 we are raising iPhone unit sales to 14% y/y growth (172 million vs. 169 million previously). For full-year FY15 we now estimate iPhone unit sales will grow 15% y/y to 197 million vs. 190 million previously, including 61.5 million units in the December quarter (builds seem well over 70 million)," he added.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $95.22 yesterday.

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