UPDATE: BGC Partners Upgrades Apple to Buy, Takes Advantage of Weakness

In a report published by BGC Partners, analyst Colin W. Gillis upgraded Apple

from Hold to Buy and lowered the price target from $550.00 to $500.00. In the report, BGC Partners wrote, "Our upgrade is based on the following: 1) The company has not negatively preannounced March quarter results so we expect revenue and earnings in the guidance range provided on January 23. 2) June quarter guidance is likely to be tepid, but we believe this is already widely expected. We model 3% YoY revenue growth for the June quarter. 3) There could be upside to earnings if the company is able to produce leverage on its gross margin. Our March quarter EPS is above consensus. 4) A revamp of the iOS operating system by designer Jony Ive may drive interest in an iPhone 5S by providing a fresh look to the software even though the hardware may retain the same form factor. 5) A dividend increase may serve to draw in new investors seeking yield. 6) The smart phone market, while showing signs of slowing growth, remains one of the most lucrative markets with close to 1 billion units expected to ship in 2013." Shares of Apple are currently trading up 1.12 percent from Friday's $390.53 closing price.