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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Cogito who wrote (43143)	2/14/2005 2:52:25 PM
From: William F. Wager, Jr.	Respond to of 213176

Apple Computer Up After Analyst's Upbeat Comments....... By MICHAEL PAIGE February 14, 2005 1:04 p.m. LOS ANGELES -- Apple Computer Inc.'s (AAPL) stock rose 3% Monday, getting a lift from upbeat comments by a UBS analyst about the computer maker's new lower-priced Mac Mini computer and iPod Shuffle digital music player products. In recent trading, shares of the Cupertino, Calif., maker of sleek tech gear were up $2.39 to $83.60. Earlier in the session, the stock climbed as high at $83.94 to mark a new 52-week high. Apple last week declared a 2-for-1 stock split, to be paid on Feb. 28. Following a recent round of visits and polls of Apple's retail stores and other retailers, UBS analyst Benjamin Reitzes said, "Apple's momentum continues - even into its seasonally slow second quarter - and is getting set to build again throughout this calendar year with new products and retail expansion." "Our checks indicate that the company is seeing a very solid reception for the new Mac Mini and iPod Shuffle, as well as strong sales of new PowerBooks," Reitzes said. "While both of these products are being met by shortages, our sources indicate that these should be alleviated by next month, in time for the end of Apple's fiscal second-quarter 2005." Reitzes raised his fiscal second-quarter earnings estimate to 45 cents a share, up from 41 cents previously, based on a 67% year-over-year gain in sales to $3.19 billion. For the entire year, the analyst increased his earnings expectation to $2.15 a share from an earlier estimate of $1.95 a share. He lifted his 2005 sales estimate to $13.7 billion, or a 65% rise from the prior year, from a prior estimate of $12.8 billion. He continues to rate the stock buy and raised his 12-month price target to $99 from $85 previously. In addition, new software titles from Apple could drive upside to its profitable software sales for several quarters, according to Reitzes. He also continues to expect Apple will launch a new, higher-capacity version of its hugely popular iPod Mini and said he wouldn't be surprised to see "a whole new generation of iPods later this calendar year." Retail traffic appears to be "extraordinary" for Apple, with its retail outlets seeing up to a million visitors per week, the analyst said. New products are selling out soon after shipments hit retail stores and many outlets have waiting lists for the Mac Mini. "While Dell (DELL) and HP (HPQ) may be seeing consumer weakness of late, it does not appear that Apple is feeling any of this pressure," Reitzes asserted. Elsewhere, Piper Jaffray analyst Gene Munster said that interest in the Mac Mini appears to be "fairly strong" and demand for the iPod Shuffle looks to be "very strong." Apple last month unveiled the Mac Mini, a slimmed-down version of its Macintosh computer, and the flash-memory based iPod Shuffle, taking aim for the first time at the market for lower-priced products. -Dow Jones Newswires; 201-938-5099