How Apple's Stock Could Reach $1,000 (Update 1)

Updated from 9:52 a.m. EST to provide poll results in the thirteenth paragraph.

NEW YORK ( TheStreet) - It's no shock to anyone that shares of Apple ( AAPL) have performed exceptionally since the start of the year, but one analyst thinks shares may have more room to run: nearly 80% higher.

Morgan Stanley analyst Katy Huberty raised her price target on Apple to $720, up from $515, as she raised her earnings estimates. What's really drawing attention, though, is Huberty's bull case. She believes Apple could go to $960 per share, nearly 80% higher than where shares are currently trading.

Huberty believes that Apple could earn $80 per share in 2013, as new products continue to roll out to more markets. Apple recently announced the new version of its iPad, and many believe the consumer tech giant will refresh its iPhone line later this year. She thinks the smartphone and tablet markets will grow massively from here, and Apple is poised to take advantage of this trend in a significant way.

The bull case sees the Cupertino, Calif.-based company generating $270 billion in revenue for 2013. In Apple's most recent quarter, its best ever, the gadget maker generated $46.33 billion in revenue. Assuming no growth, that $46.33 billion is annualized to $185 billion in revenue. Huberty's assumption's for another $85 billion more than that!

The analyst believes that Apple could earn $80 per share, and the company's stock could hit $960, citing several reasons. These include capital expenditure spending, continued growth of the iPhone (129 million units in 2013), an average iPhone upgrade rate, even without new products or multiple expansion.

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