Wells Fargo upgrades Apple; company's shares up 5.7%

Wells Fargo analyst Maynard Um has upgraded his Apple share outlook to "outperform" with a target range of US$125 to $135. 

"While we note that our fundamental stance on Apple's challenges are unchanged, we believe shares have over-corrected," Um wrote in a note to clients. 

Um, who downgraded Apple in early 2014, adds Apple CEO Tim Cook's Monday e-mail to Jim Cramer regarding Chinese iPhone sales provides better calendar quarter three visibility. 

With the help of higher equity markets Nasdaq futures are up 3.7%. Apple has risen to $109.01 premarket. Shares fell as low as $92 yesterday morning before closing at $103.12.

Speaking of Cook's email, the CEO may have violated SEC rules by sending it. In the email, confirmed by Apple  to MarketWatch, he said that iPhone activations have accelerated over the past few weeks, despite growing economic concerns in China and the government’s moves to devalue the yuan. He also wrote that Apple’s App Store had recorded its best performance of the year in China during that time.

However, the private disclosure, which was tweeted by CNBC reporter Carl Quintanilla and read on air at CNBC, may have violated the Securities and Exchange Commission’s fair-disclosure regulation, white-collar lawyers told MarketWatch

“The SEC will undoubtedly want to take a look at this,” said Thomas Gorman, a partner at the law firm Dorsey & Whitney who defends companies and individuals facing SEC and other regulatory investigations. At the very least, the SEC will contact Apple to seek context for the disclosure, he said.