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JP Morgan raises Apple price target to $420, Kaufman Bros to $395

Citing growth potential of the iPhone, iPad and Mac, two major financial firms on Thursday increased their price targets for Apple stock.

JP Morgan

Analyst Mark Moskowitz sees Apple stock growing to $420 in the next year with the company riding high on another growth spurt. He believes Apple will see balanced growth along all of its main product lines.

"While the iPhone and iPad are expected to be the biggest contributors to revenue growth in the near to mid term, the Mac business is expected to be an important contributor as well," he wrote in a note to investors Thursday. "By the end of (fiscal year) 2011, we expect the Mac to regain prominence in the Apple growth story as the company addresses the multi-billion dollar opportunity in the Target Zone of PCs."

He also said that the anticipated launch of the iPhone on Verizon's network in the U.S. will increase the devices sale's momentum, adding at least $1.25 incremental earnings per share on an annual basis.

Moskowitz also significantly increased his projected iPad sales in 2011, from a previous prediction of 21.3 million to his new projection of 26.6 million. The analyst sees Apple selling a total of 60 million iPhones, 46 million iPods, and 17.3 million Macs in the company's 2011 fiscal year.

In July, Moskowitz increased his projected price for AAPL stock to $390 by Dec. 2011, also citing growth of the iPhone and iPad.

Kaufman Bros.

Analyst Shaw Wu said checks with supply chain have found continued constraints for the new MacBook Air, as well as shortages of the iPod nano and some iPod touch models. He also said that iPhone and iPad momentum are stronger than he previously expected.

"Our triangulation of data points from our proprietary checks and market research indicate that the strength we saw through Black Friday weekend... is carrying into the present," Wu said. "This is leading us to believe this will be another holiday season with more users allocating more of their tight budgets to Apple's platforms."

Accordingly Wu has raised his estimates for Apple, increasing the price target from $380 to $395. He also sees Apple selling 4.2 million Macs in the December quarter, along with 6.1 million iPads, 16 million iPhones and 17 million iPods.