Analyst sets $205 price target for AAPL

Having released some initial predictions on Thursday, analysts with Piper Jaffray have increased their expectations for Apple stock performance and price target of $205, based on both revenue sharing with AT&T and now booked iPhone revenue. The group is predicting additional earnings per share (EPS) of $1.91 in 2009, and potentially as much as $2.49, which would bring the total growth for that year to $7.31. The determining factor will be how many iPhones Apple will be able to sell -- numbers could fall anywhere between 25 and 45 million, but will need to come closer to the latter to meet Piper's estimates.

This view is supported mainly by a belief in the "game-changing" nature of the iPhone, which is hoped will trigger a turning point similar to that of the iPod. Piper is also siding with suggestions that much cheaper iPhones are inbound, since they believe the average cost will be approximately $330.

The company raised its price target on Apple stock from $160 to $205.