Citi Raising Price Target On Apple (AAPL)

Citi Investment Research is raising its price target on shares of Apple Inc. AAPL to $415 from $390 after it reported better than expected earnings yesterday. It has a Buy rating on shares. In a note to clients, Citi writes, "We are reiterating our Buy on AAPL shares and raising our 12- month target from $390 to $415 to reflect a significant increase in earnings estimates. We are raising iPhone, iPad and Mac estimates for 2011 and 2012." Citi went on to say, "GM of 38.5% was well above guidance, our est and consensus primarily due to more favorable component pricing. We were pleased to see q/q improvement in GM in most products, but especially pleased to see iPhone margins rebound several hundred basis points following last quarter's steep drop. GM guidance for the March quarter looks conservative given continued component price declines and favorable mix. We do not believe that Apple conceded anything on iPhone wholesale pricing upon going multi-carrier in the U.S." Shares of AAPL are up $6.29 in pre-market trading to $346.94.