Apple to Reach $430 Next Year on Rising Demand, Ticonderoga Analyst Says

Apple Inc., the third-largest company by market value, will reach $430 a share in the coming 12 months, fueled by rising demand for its iPhones and iPads, according to a report by Ticonderoga Securities LLC.

The $430-a-share prediction by analyst Brian White is the highest among 37 estimates tracked by Bloomberg. The gains would propel Apple’s market value to $392.8 billion, based on the number of shares outstanding. Apple would be larger than Exxon Mobil Corp., now the biggest company by market capitalization, valued at $316.7 billion.

Apple has only recently begun benefiting from demand for smartphones and tablet computing devices, White wrote. The company is also expanding into new areas such as advertising, social networking, cloud computing and sales to businesses. Since introducing the iPhone in January 2007, shares have more than tripled. In June, it released the device’s fourth version.

“Apple has one of the hottest product lineups this holiday season with the new iPhone 4, which added over 100 new features, and the iPad, while a refreshed iPod lineup and a new version of Apple TV could provide extra juice,” White wrote, initiating coverage of the company.

Apple, based in Cupertino, California, fell $3.88, or 1.4 percent, to $278.64 as of 4 p.m. New York time in Nasdaq Stock Market trading today. The stock has risen 32 percent this year.

The company sold 7.1 million iPads in the fiscal year just ended, White estimated. He projects that the company to sell 19.9 million iPads in 2011 and 25.8 million in 2012.

Among the risks White cited for Apple are the state of the economy, competition in smartphones and tablet computers, and the health of Chief Executive Officer Steve Jobs.

To contact the reporter on this story: Adam Satariano in San Francisco at asatariano1@bloomberg.net.

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net.

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