Apple Should Trade $607: Gene Munster

He’s probably the most notorious Apple bull on the Street, but Gene Munster's upside expectations for Apple stock are eye-popping, even for him.

His price target is $607.

If you follow the tech sector at all – Munster’s Apple optimism comes as no surprise. You probably even expect his overweight rating – after all he often expounds on the company’s virtues and must have gadgets.

But $607? Considering the stock was slightly below $400 at the time of writing that’s a big move.

But Munster is resolute.

“I’m expecting shares to be driven by new product roll outs,” he says. “In 2012 there will be new hardware on and and we believe a new Apple TV is coming late in the year.”

In fact, Munster thinks Apple TV alone will be very exciting if not a game changer – for both gadget gurus and the stock.

“We’re hearing it has DVD, Internet and gaming integrated into a seamless experience,” he says.

And equally important, Munster is expecting Apple to do something with all that cash they have on the balance sheet.

“By next year, Apple will have $120 in cash and they’ll have to do something,” he says. “I don’t think they’ll buy back but I do think they’ll issue a one time dividend.”

Add up all the catalysts and Munster says although his firm has 12 picks for 2012, of them all Apple is the best.

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CNBC.com with wires.