Jefferies Raises AAPL Target To $450 From $365; Outlines Product Roadmap

Jefferies is raising its PT on Apple Inc. AAPL to $450 from $365. “Our estimates are well above consensus primarily due 1) greater than expected demand for tablets and iPhones, 2) the inclusion of new products that are not in Street estimates,” Jefferies writes. “Supply constraints remain a possible risk, but our checks indicate that Apple's suppliers are adding enough capacity to supply 80M to 100M iPhones in CY11 (our new est is 83M). “While this is 74% higher than our CY10 estimate of 48M, we note that it only implies a slight increase in smartphone market share (from 18% to 19%).” Jefferies' 2011 product roadmap includes the following speculation: (1) iPhone 5 for GSM networks in Jun. We expect the main change will be a dual-core processor that improves performance speeds and multitasking. Also, we expect the antenna issues to be fixed. (2) LTE iPhone in Oct/Nov for those carriers that have LTE (e.g., Verizon VZ). (3) LTE iPad in Q4. (4) Multiple products to assault the living room. (5) Cloud-based services. Apple closed Monday at $342.45; Verizon closed at $35.92.