Argus Research analyst Jim Kelleher told clients in a note — as reported by — that he has increased his price target on Apple from US$375 to $415, noting that the company’s strong second quarter isn’t reflected in the stock.

IPhone sales have risen to record levels, propelling Apple into the top slot among global mobile phone vendors by revenue, even as iPad sales slipped on a sequential basis, as desktop Macs declined in the quarter, Kelleher noted. He wrote that the iPhone too had a few quarters of less-than-stellar sales before taking off globally, and that the same trajectory could await the iPad.