I guess this is why there is a pop: Apple To Gain PC Market Share Over Next 2-3 Years
forbes.com
Piper Jaffray expects Apple Computer (nasdaq: AAPL - news - people ) to gain share in the personal computer market over the next two to three years. Piper Jaffray cited the iPod halo effect, "continuous innovation leading to highly functional products at realistic price points," and security and performance issues for PCs based on Microsoft (nasdaq: MSFT - news - people ) Windows. The research firm said, "It is important for investors to keep in mind that minimal upside to Mac market share estimates could have a significant impact on Apple's overall results." Piper Jaffray, which maintained an "outperform" rating on Apple, said that assuming "immaterial" market-share gain over the next eight quarters, Macintosh's market share could rise to 2.3% in calendar 2006 from 2.0% in calendar 2004. However, minimal upside to those "conservative" estimates would have a significant impact on Apple's overall numbers, Piper Jaffray said. "Specifically, we believe that if Apple could grow its market share from 2.0% in calendar 2004 to 3.5% in calendar 2006, the incremental add to our existing earnings-per-share estimate would be 30 cents, or 25%," the firm said. Piper Jaffray currently estimates Apple's fiscal 2005 earnings at $1.04 per share, and fiscal 2006 earnings at $1.18 per share.
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I guess they've been following our posts of yesterday. But what is "immaterial?"
Dan
BTW, they might only predict a 25% increase in eps if share goes from 2% to 3.5%, but watch that stock more than double if it happens. |
