Apple received a big vote of confidence as analysts raised their price target for the company's shares a day after it unveiled record profits and revenues.
Putting aside worries about Apple boss Steve Jobs' health, six brokerages tipped shares in the world's largest technology firm to hit at least $425.
On Wall Street Apple shares were 2% up at $347.44, reversing a fall that followed news about Mr Jobs' health.
Apple's co-founder said on Monday that he was taking indefinite medical leave.
The brokerages, including Goldman Sachs, JP Morgan, and Bank of America Merrill Lynch, issued a new share price target for Apple of between $425 and $465.
"While the news of Steve Jobs' medical leave may continue to add some headwinds to the share price momentum in the near term, we continue to believe improving underlying fundamentals and the strength of Apple's overall management team will counter this uncertainty," said Goldman analyst Bill Shoppe.
Record
On Tuesday, Apple announced record first quarter profits of $6bn (£3.7bn) and record revenues of $26.74bn after sales of Macs, iPhones and iPads surpassed analysts' forecasts.
Apple's first-quarter profit, for the three months to 25 December, was a 71% jump on the same period last year.
Analysts said that a strong product line-up and a planned tie-up with Verizon Communications, the leading US wireless operator, should ensure that sales continue to grow.
Apple reported gross margins of 38.5%, but JP Morgan analyst Mark Moskowitz said he expects margins to reach about 40%.
Source: http://www.bbc.co.uk
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