Goldman Sachs Raises AAPL Target to $635 on Strong iPhone Sales Expectations

Goldman Sachs analyst Bill Shope thinks Apple will report very strong iPhone and iPad sales figures during its first fiscal quarter earnings report, and because of that he is raising his 12-month target price for the company's stock from US$620 up to $635.

Analyst: iPhone sales to drive strong Q1 earnings figuresAnalyst: iPhone sales to drive strong Q1 earnings figures

Mr. Shope is projecting a strong iPhone 5S and iPhone 5C mix, along with good iPad Air sales, to push Apple's revenue to $58.42  billion, up from his earlier estimate of $57.28 billion. He's projecting first fiscal quarter iPhone shipments to hit 55.667 million, iPads to come in at 26.4 million, iPods at 8.241 million, and Macs at 4.406 million.

Apple's first fiscal quarter starts in December, which means it includes holiday sales. That, coupled with the recent iPhone and iPad refresh, should help boost the company's bottom line.

Looking forward, Mr. Shope raised his fiscal 2014 revenue estimate from $185.2 billion with a $45.19 EPS up to $188.14 billion and $45.81 EPS.

Apple is currently trading at $556.28, up 7.21 (1.31%).

[Thanks to Street Insider for the heads up]