Apple Inc (AAPL)

[roni]

Analyst stuff from Dow Jones Newswires posted at the link below.

http://www.siliconinvestor.com/readmsg.aspx?msgid=23171192

DOW JONES: Apple Shares Hit High But Analysts See Room To Grow

DOW JONES NEWSWIRES
January 10, 2007 2:44 p.m.


By Carmen Fleetwood
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Apple Inc. (AAPL) shares soared to an all-time high Wednesday following the company's long-awaited announcement that it would enter the cellphone market. But for many on Wall Street the stock price still has room for growth.

Among those raising price targets for the shares was Bear Stearns & Co. analyst Andrew Neff, who increased his calendar 2007 target 25% to $125. Meanwhile, a slew of other analysts reiterated targets in the $100 range. Bear Stearns does seek to do business with Apple.

But consider that the valuation for Apple shares is already significantly above its rival computer makers and other companies. While Apple is in a unique position with the strength of its iPod business and even its anticipated success with other consumer products, it will be incumbent for the company to show serious growth with its new products in order to support its valuation.

The median of price targets on Apple stock reported to Thomson Financial is $99.50. Apple's recent 2007 price-to-earnings ratio was 33.52 compared with 21.77 for computer makers. Apple shares reached a new high of $97.80, surpassing the previous high of $93.16 set on Nov. 27.

Recently, Apple shares were at $96.23, up 3.9% on volume of 86.1 million compared with average daily volume of 27.5 million. The company's market capitalization rose nearly 3.4 billion.

"At this point, there is no change in our price target of $99" based on calendar 2007 estimates, American Technology Research analyst Shaw Wu said in a research note. But Wu has an "upward bias" in the calendar 2008 price target "given new product momentum." The analyst has no conflicts of interest to report.





Potentially Bigger Stage For Apple Products

While the $499 to $599 price tag for the iPhone was offputting to some, many analysts believe the ease of use will give Apple's cellphone a significant edge over current models in the same category that offer the same music, video and other features. They expect later models from Apple to be more appealing to a broader audience with a lower price point.

"Given its strong product pipeline and continued Mac traction, Apple remains a great market penetration story; with less than 3% PC and 0% handset share, we believe Apple will be successful in generating widespread adoption and remains the best growth story in tech," Credit Suisse analyst Robert Semple said in a research note. The firm provided investment banking services to Apple over the past 12 months.

Others note that while it received far less attention, there is a good chance for strong sales of the Apple TV product due out in February. It will cost $299.

"With the Apple TV and iPhone devices...Apple is well positioned to leverage its growing user base and to add formidable revenue streams," said Steve Lidberg, an analyst with Pacific-Crest The firm makes a market in the stock.

By Carmen Fleetwood, Dow Jones Newswires; 201-938-5216