JP Morgan Reiterates OW Rating on Apple

JP Morgan is reiterating its Overweight rating on Apple AAPL and is establishing a Dec-12 price target of $450 (unchanged from Dec-11 target). “Our call is that the wow factor, i.e., extraordinary upside to consensus estimates, is about to return to the model,” JP Morgan writes. “We think this dynamic should lift the stock higher in coming days. We expect iPhone and iPad units to exhibit increasing momentum in the June quarter print. “Meanwhile, our Mac and iPod unit estimates are roughly unchanged. As for what is next, we expect Apple to unleash a new MacBook Air (with lower entry price) and iPhone 4-plus sometime in the current quarter. In our view, the return of the wow factor and new product cycles should jettison the fear that had been dogging valuation the last couple months.” Apple closed Wednesday at $358.02.