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Monday, 07/31/2006 8:50:34 AM

Monday, July 31, 2006 8:50:34 AM

Post# of 147324
08:09 AAPL Apple Computer: Upgrade details (65.59 ) -Update-

As mentioned at 6:22, BofA upgraded AAPL to Buy from Neutral and raises their tgt to $79 from $68 saying that channel checks show higher end demand for MacBooks than their previous checks. Firm is encouraged that Street expectations have moved lower for iPods, which was part of the reason for their downgrade in Dec 05.

Firm sees the same product introduction schedule as they have mentioned previously - a new Nano late in the Sept Q and modestly upgraded Video in Q4, in time for a holiday demand. Further EPS upside potential from iPod of $0.08-0.12. Also, firm is not including the impact of an AAPL phone, which could be $0.03-0.05 in F07.
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