Piper Jaffray Says Apple is Top Large-Cap Pick
Piper Jaffray selects Apple Computer (AAPL ) as its top large-cap pick through 2005, and keeps an outperform rating on the stock.
Analyst Gene Munster says he expects several new product introductions by the end of calendar year 2005, including higher capacity iPod shuffle or another form of flash-based iPod and color screen iPod mini, as catalysts for holiday sales.
Munster thinks that minimal upside to current Mac market share estimate would have a significant impact on Apple's overall numbers: if Mac grows market share to 3% in calendar year 2006 from 2.4% in calendar 2004, his current earnings per share estimate would increase by 14 cents, or 9%; or to 3.5% in calendar 2006, his existing EPS estimate would rise by 26 cents. Also, he believes September-quarter guidance is conservative.