UBS Raises Apple PT on Potential of China Mobile Deal and in Anticipation of iPhone 5c

In a report released this morning, UBS analyst Steven Milunovich raised his price target on Apple AAPL from $500 to $560, while reiterating his Buy rating. Milunovich stated that the accretive impact of an iPhone 5c could present a new revenue stream for the tech giant, and could help shares continue their breakout. His model accounts for a $399 price point on the new phone and a 38 percent gross margin. Further adding to his bull case, he stated that he expects a deal with China Mobile before the year end. The report also mentioned that he does not expect the company to increase its buyback in the near term, despite the fact that the company could "easily fund" a $30 billion increase. Following the report, shares rose slightly, gaining 0.69 percent to $504.49 midway through the morning Wednesday.