UPDATE: UBS Investment Research Upgrades Apple on Improving Perception, Money Flow

In a report published Tuesday, UBS Investment Research analyst Steven Milunovich upgraded the rating on Apple (NASDAQ: AAPL) from Neutral to Buy, and raised the price target from $540.00 to $650.00.

In the report, UBS Investment Research noted, “We are upgrading Apple to Buy with a price target of $650 and have modestly increased our F14 estimate in anticipation of China Mobile. The new era of IT-as-a-Service and particularly the emergence of cloud computing are viewed as a threat to incumbent enterprise players. We previously downgraded IBM and Accenture in part due to those concerns. Apple, however, is the uncloud company, mostly benefiting from SMAC technologies. We see institutional money moving back into Apple in 2014. Software analyst Brent Thill thinks Apple has more upside than does Microsoft.”

Apple closed on Monday at $551.22.