BMO Capital Bumps Apple Target Price to $590

BMO Capital analyst Keith Bachman is expecting Apple to report quarterly iPhone sales that come in above estimates, and in response he raised his 12-month target price for the company’s stock from US$545 up to $590.

Mr. Bachman raised his second quarter iPhone sales estimate from 28 million units up to 29 million, and now he’s expecting Apple to sell 120 million iPhones for the year. His original annual iPhone sales estimate came in at 118.5 million units.

Analyst: Apple to sell 120 million iPhones this yearAnalyst: Apple to sell 120 million iPhones this year

Assuming Mr. Bachman’s figures are correct, Apple will outpace the growth rate for the smartphone market in 2012, according to Barrons. Come 2012, he expects Apple’s smartphone growth rate will come in at 1.5 times the rest of the market.

He also raised his fiscal 2013 iPhone sales estimate from 153.5 million units sold up to 156.3

Along with his $590 target price, Mr. Bachman is raising his quarterly EPS from $8.96 up to $9.16. Apple is currently trading at $526.98, up 1.22 (0.23%).