Analyst Note: Cowen and Co. sees Apple upside

SAN FRANCISCO (AP) -- Apple's stock price climbed above $500 again Monday after a group of Cowen and Co. analyst predicted the maker of the iPhone and iPad will boost its revenue growth as it rolls out more products and services during the next year.

In a research report, Cowen and Co. analysts Timothy Arcuri, Kenneth Lee and Bryan Prohm argued that investors have been underestimating the moneymaking power of Apple Inc.'s technology line-up. They believe the Cupertino, Calif., company is poised to make a bigger dent in markets outside the U.S. with a less expensive version of the iPhone that is expected to be unveiled at an event scheduled for Tuesday. The analysts also reason Apple could easily bring in more revenue as it processes more payments made on its iPhones and sells ads for a new Internet radio service tied to its popular iTunes store.

A cheaper iPhone, expected to be called the "5C," could help Apple forge business relationships with the roughly 500 wireless carriers that don't currently sell the device, Cowen and Co.'s analysts wrote. Most of those operators are located in less affluent countries where most people haven't been able to afford the top-of-the-line iPhone that sells for more than $600 without a wireless contract.

Cowen and Co. maintained its "Outperform" rating on Apple's stock, as well as a $550 price target.

The company's shares rose $9.53, or nearly 2 percent, to $507.75 in Monday's afternoon trading. The stock peaked at $705.07 nearly a year ago around the same time that the last model of the iPhone went on sale, but then sunk to as low as $385.10 in April on rising concerns about Apple's slowing growth amid tougher competition from smartphone makers relying on Google's free Android software. Apple's stock didn't bounce back above $500 again until last month.