Alomex,
Check this out:
Dave
Thursday July 17 11:10 AM EDT
Company Press Release
Source: Robert M. Cohen & Company
Robert M. Cohen & Co., Inc. Issues Speculative Buy for Apple Computer
GREAT NECK, N.Y., July 17 /PRNewswire/ -- Robert M. Cohen & Company initiated coverage of Apple Computer, Inc.
(Nasdaq:AAPL) with a speculative buy and set an 18 month price target of $32 per share.
Despite the current turmoil, Robert M. Cohen analyst Keith R. Bossey sees 1998 as a ``year of rebirth for Apple.'' While
yesterday's earnings release showed continuing losses, they were significantly less than expected and gross margins actually
improved in Apple's third quarter.
Although Apple's Board must once again fill the CEO position, Bossey believes the resignation of Gil Amelio marks the beginning
of a transition from a restructuring company to one focused on targeted growth.
The growth of the Internet as the computing platform of the future could be the key to a turnaround for Apple if the company can
integrate the simple, yet technologically advanced Mac operating system in an Internet driven world. ``Apple continues to dominate
the creative industries and, whether publishing on paper, CD-ROM or the Web, the Mac is the choice,'' Bossey says.
Finally, Apple still has one of the most recognizable brand names in the world, which makes the company a potentially valuable
acquisition.
Bossey believes Apple's time will come again. The hiring of a strong CEO could take Apple back to its previous heights as well as
rekindle its relationship with Wall Street. If a price/sales ratio of 0.56 (industry average discounted 20 percent) is applied to a
FY1998 revenue estimate of $7.2 billion, the result is an 18 month price target of $32.
SOURCE: Robert M. Cohen & Company
Contact: Keith R. Bossey of Robert M. Cohen & Company, 516-829-7910 |
