Innovation has been the key to Apple’s [AAPL  668.87     12.808  (+1.95%)   ] success, whether it’s the iPhone or the iPad, Power said.

“It will be imperative Apple continues to innovate, not only with iPhone 5 but future iPhones and other products around that,” Power said. “That’s how you get to that vaunted trillion-dollar market cap at some point.” Apple Becomes Biggest Stock Ever.

Power expects the iPhone 5 to be a blockbuster. But Apple must continue to look at new markets. “TV is one of those big ones,” Power noted. “I think it will be critical for the stock.”

Unlike some of the more bullish analysts on the Street, Power has a relatively conservative price target of $740 a share on Apple. That still represents a potential upside of over 10 percent from current levels.

Power said this more conservative price target is deliberate. “We’re using a 13 times multiple and giving no credit to the cash balance,” he said. At the end of the second quarter, Apple had $110 billion in cash and long-term marketable securities.

“I do think when all is said and done there’s a bias to the upside, not only in terms of multiple expansion opportunity but also in terms of upside to numbers as they deliver on these products,” Power concluded.