Apple Inc (AAPL)

[fmikehugo]

08:42 AAPL Apple Computer tgt raised to $84 from $79 at BofA (74.53 ) -Update-

BofA raises their tgt on AAPL to $84 from $79 following earnings. The firm says one major issue they identified yesterday was gross margins. - mgt did indicate that gross margins would be down q/q about 100 basis suggesting that their thesis on recent product price cuts negatively impacting margins is appropriate - though the firm believes that they may have overestimated the magnitude. The firm is modestly increasing their gross margins by 10-30 basis points in the back half of the year, though largely offset by higher op ex, leaving operating margin little changed.