JP Morgan Upgrades Apple to Overweight

Analyst Bill Shope still sees more upside for the computer giant's stock

JP Morgan upgraded Apple (AAPL ) to overweight from neutral.

Analyst Bill Shope says Apple is clearly a late story, but says it's now apparent that there's substantially more upside left for investors.

He says if certain trends continue, his upward revision to estimates could prove conservative. Shope notes that without better products from competitors, or a repeal of the Digital Millennium Copyright Act that protects Apple's tightly bundled iPod/iTunes model, Apple's current dominance of the market could last beyond next year. He raised the $1.00 fiscal 2005 (Sept.) earnings per share estimate to $1.28.

He believes Apple commands a premium multiple relative to its peers at historical levels.