Banc of America Raises Apple Target
Banc Of America raised its price target on Apple Computer (AAPL ) from $47 to $73 and maintains its neutral rating.
Analyst Keith Bachman says his early read on the first quarter is that Apple will report 51 cents. He ups his $1.24 fiscal 2005 (Sept.) earnings-per-share estimate to $1.60, and sets a $1.93 fiscal 2006 estimate.
He thinks Apple will sell 4.1 million iPod units in the first quarter. However, he thinks the stock reflects a very successful holiday selling season for iPods, but for Apple to keep moving higher based on real fundamentals, he believes CPU growth will have to accelerate.
Bachman believes the iPod will become less important of a driver of stock after the first quarter. He has started to see the first signs of crossover from iPod's to CPU's, but fears investors are overestimating the potential.
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