Barclays Reiterates Overweight on Apple on Potential for New iPad

In a report published Tuesday, Barclays analyst Ben A. Reitzes reiterated an Overweight rating and $540.00 price target on

. In the report, Barclays noted, “We believe one of Apple's big issues right now is that it is considered a ‘one-product' story again. iPads and Macs seem to be almost forgotten at this point as estimates seem to favour the downside. While iPhone has a bigger TAM and this shift is good for margins, we believe that Apple clearly needs more than just one growing product to warrant a higher multiple. We think the real next product may be right under our nose in the iPad - but not in its current form. The iPad already was a transformational 'second product' from 2010 through 2012 – and could be again in our view – but the product must change given new competition.” Apple closed on Monday at $487.75.