BTIG Raises Price Target on Apple (AAPL) To $450, Sees iPad Sales of $24B in 2011

BTIG is reiterating their Buy rating on shares of Apple (NASDAQ: AAPL) and is raising their price target to $450 from $375 due to strong acceptance of the iPad 2 over its opening weekend and on their expectation that the iPhone 4 will continue to show strong sales.

The firm now believes that the iPad will generate of $24 billion in revenue in 2011 as they raise their 2011 total iPad sales to 40 million from 33 million. If so, this would account for 20% of total revenue for just a product that is only two years old. BTIG expects that AAPL will sell 8 million iPads in March of 2011 and states that, if Apple is selling iPads essentially as fast as they can make them, it would make sense for them to allocate more manufacturing capacity to higher end models." They do not believe that the iPad is killing the laptop at to much of a rapid pace and is increasing their estimate of Apple portables sold in 2011 by 1.9 million units to 11.5 million and increased their ASP estimate by over $50.

iPhone sales are now expected to reach 70 million in 2011 due to the success Apple achieved in the December ending quarter and the delays in some early LTE based Android products. The firms is anticipating that Apple will sell 15 million iPhones at an ASP of $630 in the March-ending fiscal second quarter.

BTIG is raising their 2011 EPS estimate to $23.50 from $19.14 and their 2012 to $26.50 from $21.74. They state that the company continues to show that they will not be stopped or even slowed down. Five months ago BTIG's 2011 revenue estimate for AAPL was at $86 billion while the consensus was $80 billion; and now their estimate is at $102 billion and the street is just under $100 billion.

The firm comments that, "The evolution of the iPhone and iPad make it apparent that the Apple TV can play a larger role in Apple’s strategy. Now is not the time or the place to expound on that opportunity and it would be disingenuous to do so considering we do not forecast material growth related to this product in our financial models. Apple TV is currently accounted for in the segment that includes iPods which is benefiting from strong unit sales and ASP growth from the iPod Touch."

For more ratings news on Apple click here and for the rating history of Apple click here.

Shares of Apple closed at $345.43 yesterday.

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