Piper Jaffray analyst Gene Munster has raised his price target on Apple to $135, up from $120.
Apple is currently trading at $114.67, up 43% year-to-date.
Munster is the just latest analyst to up his price target. This week Walter Piecyk at BTIG raised his price target, Morgan Stanley's Katy Huberty raised her target, and the Apple analyst at Oppenheimer raised the price target.
Munster is raising his target because he believes the iPhone 6/6+ is going to sell in large numbers for longer than people expect.
He says that Apple still can't meet demand for the iPhone 6/6+. He estimates that 58% of iPhone 6/6+ models are in stock at US Apple stores. That's up from 6% a month ago, but it still means that Apple is missing 42% of the iPhone 6/6+ models in its stores.
Anecdotally, people at Business Insider have tried to order the iPhone 6+ and it's hard to find it in stock in the mid-range, 64GB tier. This could be limiting sales as people wait to get the exact model they want.
Munster also says that online orders are stable, but experiencing delays. An iPhone 6 will ship 7-10 days after being ordered. An iPhone 6+ will ship 3-4 weeks after being ordered online.
These supply problems will not hurt this quarter's numbers, says Munster. He doesn't think Apple would have forecast the revenue it forecasted if it thought that it couldn't make enough iPhones. Apple is expecting $63.5-$66.5 billion this quarter. Because of the supply issues, Munster doesn't think Apple is going to demolish its numbers. It will either hit them, or just barely beat them.
Still, Munster sees the supply problem as a positive. If someone wants an iPhone, but it's not in stock immediately, that person isn't going to buy an Android phone, that person will just wait until its in stock. As a result, Munster believes the iPhone 6/6+ will continue to sell very well into the first three months of next year as people continue to buy the phone.
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