Ittai Kidron, an analyst with Oppenheimer, announced he was increasing his target price on Apple (NASDAQ:AAPL) stock from $570 to $510, and raising the target forecast for financial year 2012.  The company maintained its standing “overperform” rating.

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The boost, according to Kidron, was based on better expectations on sales of both the iPhone and the iPad.  Right now, Oppenheimer foresees only a slight post-holiday decrease in demand for the iPhone 4S.  That isn’t matched by the iPad, which Kidron believes “reflects the expectation of a new iPad 3 announcement.”  Kidron, as do many people, expects the new device to be announced on March 7, with new it shipping out shortly thereafter.  The new device, he expects, will boast a display upgrade and a faster processor, and maybe even a larger screen.

If that happens, the analyst believes that the iPad 2 will then move down to a lower price point, and thus allow Apple to proliferate the burgeoning tablet market at a lower tier.  Kidron’s first quarter sales forecast has been increased to 31 million iPhones and 11 million iPads, up from 29 and 10 million, respectively.

“There’s no change to our thesis,” says Kidron, “we’re bullish on more iPhone and iPad expansion and potential new markets, particularly smart-TV.”

For financial year 2012, Kidron sees profits of $45.78 per share, up from $45.14 initially, with even more bullish expectations of $52.38 a share in 2013.

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To contact the reporter on this story: Jonathan Morris at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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