Analysts were quick to raise their price targets on Apple one day after the maker of iPads and iPhones reported another blowout quarter that exceeded expectations.
"The party is just getting started," said JPMorgan, which overweights Apple stock. "In our view, the return of the wow factor, easing supply constraints, and pending new product cycles should jettison the fear that had been dogging valuation the last couple of months. We are raising our Dec. 12 price target to $525, versus $450 previously."
For the September quarter, JPMorgan now expects Apple revenue of $29.63 billion from $28.85 billion, and earnings of $7.15 a share from $6.91 a share previously. JPMorgan makes a market in Apple shares.
One thing JPMorgan likes in particular? Apple reported revenue in China rose six times year-over-year to $3.8 billion, and that it is "still just scratching the surface" in the region.
Whether there is room for Apple to grow concerns Andy Hargreaves, senior research analyst at Pacific Crest Securities, which has an "outperform" rating on the stock. His company also makes a market in the stock.