Could Apple’s Stock Price (APPL) Hit $390 off of iPhone and iPad Sales?

Graph showing Apple's profit rising to meet iPhoneDespite ‘Antennagate’, the delay until next year of the white iPhone 4 and supply issues that are hampering sales right now, Apple’s stock price is projected to hit around the $390 mark according to multiple analysts. Why such a high number? Apple’s stock price right now (APPL) is hovering around $318. A $70+ jump per share is huge but the way Apple has been performing lately, not entirely unexpected. With the iPad 2 expected to come out early next year along with a Verizon iPhone 4 and the rumored but widely expected iPhone 5 ‘world phone’ with both CDMA and GSM radios inside slated for mid-2011, you just know Apple will blow past anyone’s expectations.

Stifel Nicolaus analyst Doug Reid is the one projecting Apple’s stock price hitting $390. Also expecting Apple’s stock to hit the $390 number is Barclay Capital analyst Ben Reitzes. A couple more analysts have also weighed in and have very similar figures. Bernstein analyst Toni Sacconaghi expects Apple’s stock to hit $375 while Gene Munster from Piper Jaffray expects Apple to hit the $431 stock price level within 12 months.

What is powering these huge jumps in Apple’s worth? Reid expects Apple’s first quarter 2011 revenue to hit $24.15 billion and the company’s gross profit margin to be better than Apple’s own 37% projections. He also sees Apple selling 58.8 million iPhones this year and selling them for an average of $580 apiece (this is based off the rumors that Verizon will pay Apple extra per iPhone to keep them off of T-Mobile and Sprint’s networks).

As for the iPad, Reid expects Apple to sell 6.85 million of them this quarter alone. Remember, the iPad 2 will be coming out next year and could bring USB connectivity, FaceTime and a whole lot more to compete against the slew of tablet competitors coming out. Similar to Reid’s estimates, Michael Walkley from Canaccord Genuity expects Apple to sell 6.3 million iPads this quarter.

If the stock price targets do pan out next year and Apple hits the $390 a share mark, this would raise Apple’s market cap to $357.75 billion. That would also make Apple the most valuable company in America and push it past Exxon Mobile.  Apple has already passed Microsoft in market worth this year and it looks like no slowdown is in sight.

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