Apple Inc. (NASDAQ:AAPL) is back in the good graces of Jefferies analyst Peter Misek. He issued a report upgrading the company to Buy from Hold and setting a new price target of $600 a share. Shares of Apple rose as much as 2 percent in early Monday afternoon trading, bringing the stock back up close to $500.

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Misek turns bullish on Apple

Misek has had a Hold rating on Apple since March, mostly because he has been expecting a smart television from the company and it has yet to deliver on his expectation. At that time, his supply chain checks also suggested a problem at Apple. He slashed his price target from $500 to $420 a share, along with several analysts who turned bearish on the company in the wake of weak iPhone 5 sales.

His recent supply chain checks have caused him to change his view on the company, however. He said Apple Inc. (NASDAQ:AAPL)’s suppliers indicated to him that they have offered better pricing for the company’s components. He notes that the result will be better gross margins, which will give the company a boost.

Misek still looking ahead to iPhone 6

In spite of making several predictions about Apple’s plans which turned out to be incorrect—several of which were about the so-called iTV—Misek is still making predictions. In his latest report, he said he believes Apple Inc. (NASDAQ:AAPL)’s next-generation iPhone 6 will have a 4.8-inch screen. That follows similar comments he made on the subject earlier this year.

Misek estimates that about 85 million iPhone users will be eligible to upgrade their phones when the iPhone 6 is released next year. In fact, he believes that the number could be even higher since about 5 million to 10 million users may choose not to upgrade to the iPhone 5S this year. The analyst is expected to see the iPhone 6 in September of next year.