iPhone 5S To Help In Shooting Up Apple Stock Towards $700 [Analyst]

On Friday, an analyst, Maynard Um of Wells Fargo Securities has issued a note to investors to discuss a potential rebound for the tech giant. Despite the fact that Apple stock has been pummeled in the first month of 2013, Um feels that things will turnaround as 2013 wears on.

In a note to investors, as outlined by AppleInsider, Um did his best to keep a positive outlook. The analyst has claimed that "A year ago, the iPhone 4S and iPhone 4 shared common components, helping to boost Apple's gross margins. Along with a record setting launch of the iPhone 4S in the 2011 December quarter, he believes it could make for a tough comparison for Apple for the start of the year."

But Um sees Apple's difficult 2012 comparisons easing as the year goes on. He expects that Apple's next iPhone, the so-called iPhone 5S will share design similarities to the current iPhone 5, helping to improve margins.

For now, Um agrees that things are going to be tough for Apple and investors. However, the good thing is that he is expecting a turnaround when the iPhone 5S eventually makes it way to market. While this is no guarantee of a turnaround, he seems to think that things will begin to look up sooner rather than later.

Because of that, Apple's current "black ice," as Um put it, is predicted to "thaw through summer." He sees easier comparisons to 2012 along with improving gross margins, which could improve sentiment among investors.

Wells Fargo Securities has a projected valuation range for AAPL stock from $680 to $730. In the last quarter of 2013, Um expects Apple sold 48 million iPhone units, with about three quarters of those being the new iPhone 5. And iPad sales are projected to be 20.2 million, with about half of them being the iPad mini, dropping the average selling price to $450.