By Chuck Jones, Contributor

Pacific Crest’s Apple analyst, Andy Hargreaves, raised his rating on Apple from Sector Perform to Outperform based on the iPhone 6 having a 4.7 inch screen and selling for a subsidized price of $299. He also believes that given the low valuation of the shares at 6.5x Enterprise Value/Earnings Before Interest Taxes Depreciation and Amortization (EV/EBITDA) and the “optionality” of new categories that there is limited downside to the shares. Hargreaves also expects only one new iPhone form factor this year and that it will be launched in September or October. Given the lost sales Apple has incurred by not having a larger screen iPhone I lean to two new form factors and bringing at least one to market in the spring/early summer. (Note that my family and I own Apple shares and have sold put options, a bullish position).