“Piper Jaffray maintained an ‘outperform’ rating and $100 target price on Apple Computer, saying the company’s iTunes music-download service could begin to have a ‘notable’ earnings impact in calendar 2005 and 2006,” Forbes reports.

“‘We are currently modeling for iTunes revenue to account for 3.6% of revenue in calendar 2006,’ the research firm said. Piper Jaffray said iTunes downloads for calendar 2005 could reach 513 million versus the current estimate of 387 million, and 2006 iTunes downloads could reach 1.0 billion versus the current estimate of 542 million,” Forbes reports. “Piper Jaffray believes price-to-earnings multiples for Apple shares haven’t factored in the “massive success” of the iPod nor the iPod’s ‘halo effect’ that is expected to carry over to Apple’s core Mac business.”

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