This Survey Shows A Bullish View On Apple (And Apple Pay Gaining Traction In The Marketplace)

Cowen and Company issued a report on Monday highlighting Apple Inc. (NASDAQ: AAPL) after a global survey showed that investors are still bullish on iPhone demand, Apple Pay usage and longer-term Watch adoption. Apple rated as Outperform with a $135 price target.

Analysts Timothy Arcuri, Bryan Prohm, Karl Ackerman and Wayne Loeb wrote, "Despite optically challenging comps, our survey was bullish on a number of fronts. New consumer options continue to materially boost near-term demand and break down the traditional 2-year replacement cycles; this is likely to continue. Additionally, ~25 percent of all iPhone 6/6+ purchases have been "virgin" demand (primarily Android "switchers") meaning Galaxy S6 likely represents "do or die" for Samsung at the high-end. … the survey suggests units are still growing ~10 percent year over year even excluding these new users. Longer term, these share gains bode well for AAPL's ability to monetize its growing iOS user base."

The survey showed that demand for the Apple Watch is high, however, concerns over specifications and functionality may limit the initial popularity of the product.

Apple Pay is continuing to gain support by consumers as the survey showed that 35 percent of all iPhone 6 and 6+ users are using the service and of those over 65 percent are using it several times per week. The analysts believe that this indicates a desire for an Apple Pay rewards program and a strong preference to patronize retailers supporting Apple Pay. These preferences should further catalyze broader retail adoption.

Apple closed Friday at $125.90.