Fortune reports on a research note put out by Morgan Stanley’s Katy Huberty in which she raised Apple’s price projections from $515 to $720. She noted however that the bull case for a $960 valuation for AAPL out over the next year.
The reason for such a high valuation:
“We believe Apple’s earnings power is potentially far greater than investors believe and our prior bull case model suggested,” she wrote citing three main factors:
1) Enterprise tablet adoption combined with demand upside from lower-priced iPad.
2) iPhone estimates don’t credit Apple for the potential share gains when it launches an LTE-capable device in 2H12.
3) China and other emerging markets, like Brazil, remain huge untapped markets.