Needham ups AAPL target to $375 on Mac, iPad sales

Research firm Needham & Co. has made a major hike to its price target for Apple stock, adjusting the number from $280 to $375. Analyst Charlie Wolf notes that the increase is based on the many changes since a February evaluation. In particular the vector of Mac and iPad sales is thought to be "materially higher" than originally forecast; iPad sales, for example, were at one point expected to hit 20 million by 2019, but are already approaching 12 million a year. This is before the iPad has even finished spreading to other countries, says Wolf.
Mac sales are claimed to be on track to hit 14 million in 2010, 50 percent better than previously forecast. Wolf adds that the iPhone is also a contributing factor to stock worth, since the iPhone 4 launch showed that people are upgrading "much faster" than predicted. This should further boost iPhone sales, he suggests, even if the install base remains in line with projections.

People are cautioned that iPad forecasts could be "wildly off," as the device is relatively new. Similarly, because the iPhone is a large influence on Apple, any slight deviation could have major ramifications. Needham is compensating in effect by not factoring in the potential of a Verizon iPhone, according to Wolf.

Read more: macnn