Jim Cramer Sets $264 Price Target For Apple

The stock market surged again on Wednesday as the Dow Jones Industrial average climbed 108 points and seems intent on topping 10,000 before the year end. Seemingly everyday new economic reports seem to portray that economic recovery has begun. Mad Money host Jim Cramer has clearly gotten more bullish over the last few months and just recently increased his price target for favorite stock Apple from $200 to $264.

Here is a review of the performance of Jim Cramer’s stock picks from Tuesday’s Mad Money show.

Apple (AAPL: 476.68 0.00%)
Apple’s stock soared 3.8% after Jim Cramer announced yesterday that he is increasing his price target from $200 to $264. Cramer believes that Wall Street’s earnings estimates are too low for Apple and believes the consensus estimates could climb from $8 to $12 per share. This will largely be the result of the expected changed in FASB regulations on how Apple can recognize revenue. Currently, revenue from new iPhone subscribers is spread over the 24 month contract period instead of being recognized up front. While Cramer believes that this could cause earnings estimates to increase dramatically, he believes the stock will maintain its current earnings multiple. That would drive Apple’s stock price considerably higher and he urged investors to get in now ahead of the announcement.

Flextronics (FLEX: 6.94 0.00%)
Flextronics stock jumped 7.8% today after Technical Analyst Dan Fitzpatrick showed that the stock had already crossed its 50 day moving average and was ready for a breakout. Mr. Cramer likes the company for its fundamentals and diverse geographic exposure. Cramer believes that Flextronics is the cheapest stock in its sector and trades at only 12 times 2011 earnings estimates. While the stock has surged over 250% off its market lows, Cramer believes there is still more upside ahead.

Cramer’s Lightning Round stock picks:

First Solar (FSLR: 45.81 0.00%) spiked 4.9% – Cramer continues to recommend First Solar as the only solar stock to buy.

Priceline (PCLN: 538.37 0.00%) jumped 3.2% – Cramer called Priceline the Amazon.com of travel and believes the company has a strong business model and that the stock is only going higher.

Canadian Solar (CSIQ: 4.12 0.00%) rose 5.0% – Despite bearish comments by Cramer who stated that he was nervous about solar stocks in general.

Movado (MOV: 18.99 0.00%) jumped 2.8% – Another stock that Cramer was bearish on due to its position within the high-end market.