When you think of Apple’s string of successful product launches, the word “underperform” doesn’t immediately enter your vocabulary. However, one Wall Street analyst believes the Cupertino, Calif. company has plenty of room for growth. The iPhone maker’s stock has risen 37 percent in 2010, but is a far cry from the 75 percent earnings consensus from consumers. In fact, the Oppenheimer analyst expects Apple will report Oct. 18 a “blowout” quarter and sales of at least 12 million iPhones.
“The prime factor behind the underperformance of the stock relative to the fundamentals seem to be investor concern about Apple’s size,” Yair Reiner told investors Friday. “Bottom line, as big as Apple is today, it seems destined to get much bigger,” he adds. On that note, Oppenheimer raised its 12-to-18-month price target for Apple stock to $345 on expectations of $19.9 billion in revenue – up from previously forecast $18.5 billion.