This is still nothing but a rumor, but there seems to be more and more evidence that Apple is indeed testing a larger device. The iPhone 6 also seems like a right fit for a new design as it should come next year, two years after the last big redesign in the iPhone series with the iPhone 5.
“Despite still seeing risk to CQ4 and FY13 revs, we now believe better [gross margins] will allow Apple to skate by until iPhone 6 launches with its 4.8″ screen,” Misek wrote in a note. ”We est ~50% of smartphone shipments have >4″ screens and that iPhone 6 will catalyze a large upgrade cycle. The stock is attractive based on the attitude change, FY15 revs >+15%, and valuation.”
Misek previously issues a Hold rating on Apple stock, and is now once again bullish, giving Apple shares a Buy rating and raising his target for the stock to $600.