Fortune reports on a research note put out by Morgan Stanley’s Katy Huberty in which she raised Apple’s price projections from $515 to $720. She noted, however, $960 was the bull valuation for AAPL out over the next year.

The reason for such a high valuation:

“We believe Apple’s earnings power is potentially far greater than investors believe and our prior bull case model suggested,” she wrote citing three main factors:

  • 1) Enterprise tablet adoption combined with demand upside from lower-priced iPad.
  • 2) iPhone estimates don’t credit Apple for the potential share gains when it launches an LTE-capable device in 2H12.
  • 3) China and other emerging markets, like Brazil, remain huge untapped markets.

More information is available at Fortune.

Update: AAPL is skyrocketing, up over 2% on the news.

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