'Don't Stop Believin'' Cowen Raises Apple Price Target

In a note released Tuesday morning, Cowen analyst Timothy Arcuri raised his price target for Apple Inc. AAPL from $90 to $102 and maintained an Outperform rating. Arcuri is remaining constructive as we move towards the September iPhone 6/wearables launch and is "very bullish on units" following recent supply chain checks. Looking at the global smartphone market, Arcuri listed five factors he views as favorable for Apple.

1. Apple has maintained its market share despite not serving the ~30 to 40 percent of consumers who favor larger screens.
2. Arcuri estimates approximately 140 million unit installed base of pre-iPhone 5 and sees LTE-A and larger screens as presenting a "compelling upgrade case".
3. The company's market share gains in China appear correlated with LTE roll-outs.
4. iPhone operator early upgrades programs continue to gain traction in key markets.
5. the Competitive landscape for high-end smartphones remain primarily duopolistic.