BMO Capital Markets raised its fiscal 2011 profit forecast for Apple Inc. (Nasdaq: AAPL) amid strong demand for iPhone.

Analyst Keith Bachman, who has an outperform rating on Apple stock, increased his fiscal 2011 profit estimate to $22.30 a share from $21.60 a share. Wall Street expects Apple to earn $22.90 a share for 2011, according to analysts polled by Thomson Reuters.

Bachman also raised price target on Apple stock to $410 from $405.

Our thesis on AAPL is that, as long as units continue to go up, we believe the stock will continue to go up, Bachman wrote in a note to clients.

Shares of Apple closed Monday's regular trading session at $339.32 on Nasdaq.