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Analyst who called Apple sell-off: Rebound ahead

A customer holds boxes of the new Apple iPhone 6S while waiting to check out at an Apple store in Palo Alto, Calif.
David Paul Morris | Bloomberg | Getty Images
A customer holds boxes of the new Apple iPhone 6S while waiting to check out at an Apple store in Palo Alto, Calif.

Editor's note: TipRanks is a tech company that ranks analysts and financial bloggers based on their picks' performance. This piece highlights analysts with great track records who are not necessarily from the biggest firms.

The worst is over for Apple as earnings estimates from Wall Street on the iPhone maker have finally bottomed, according to Cowen & Company analyst Timothy Arcuri, who upgraded the stock Wednesday.

The analyst, who downgraded Apple in July before the stock fell 18 percent over the following eight months, believes the next catalyst will be the 2017 release of an iPhone with flexible screen technology.

As a result of the promising new technology, Arcuri is upgrading the omnipresent tech company from "hold" to "buy" and raising his price target to $135 from $125, marking a 25 percent potential upside from Tuesday's close.

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This prescient downgrade fits with Arcuri's track record as he is rated in the top 10 percent of all analysts on Wall Street, according to TipRanks. Arcuri has a 6.7 percent average one-year return per call, according to the site.

The analyst outlines three reasons why he's ready to buy into Apple again:

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