Following last Monday’s Keynote address, Morgan Stanley analyst Katy Huberty issued a research note to investors predicting iPad unit sales to reach 10 million in 2010. Huberty’s previous iPad sales estimate was 6 million units.
Accordingly, Huberty raised her target price for Apple stock to $332, up from a previous target of $310. Under Huberty’s best case scenario, or her “bull case”, the Morgan Stanley analyst writes that Apple’s share price may rise as high as $440/share.
So what’s behind Huberty’s even more bullish outlook on Apple? One word: iPad.
Again, Huberty increased her 2010 iPad estimate by over 50%, explaining that the iPad may very well be the fastest growing Internet device ever released, and may soon become one of the most popular mobile devices in history. Huberty solidifies her position by pointing to diminishing netbook sales, and by pointing out that the iPad’s browsing share already exceeds that of the iPod Touch, thereby confirming the iPad’s place as a legit computing device.
As you can tell from the chart below, the iPad is on an incredible pace to become the fastest growing mobile device in history. You thought the iPod was a hit? Think again. This of course is highly speculative given that there are still 6 more months to go in 2010, but if early sales are any indication, Huberty’s chart may prove to be prophetic.