Merrill Lynch raises its Apple price target to $49 from $44 a share

“Merrill Lynch overnight raised its price target on Apple Computer (APPL) shares to $49 from $44 after the PC maker topped the earnings per share forecast for the latest quarter late Wednesday,” Emily Church reports for CBS MarketWatch.

“Merrill analysts raised the earnings estimate for fiscal 2005 to $1.20 a share from 95 cents a share,” Church reports. “Apple’s earnings upside in the quarter ‘was entirely in iPods as Mac sales suffered from continued shortages of the G5 chip from IBM (IBM),’ Merrill said. ‘Because we believe in the halo effect of iPod, the positive impact on Mac sales may still be coming.'”

Full article here.

MacDailyNews Take: The “iPod Halo Effect” is real, but not instantaneous. People take years to buy a new personal computer. Next time they do, they will not be ignoring Macintosh and Mac OS X, especially if they’re listening to their Apple iPods. Have you seen the new iMac G5 in the flesh? It sells itself.

10 Comments

  1. i was going to take some High School graduation money and drop $100 on Apple stock back when it was $12!

    Everyone told me I was crazy, and now I’m kicking myself for it!

    The REAL second coming is now!

  2. As I have said in other threads, these guys (Wall Street) still don’t “get it”, they are following the market and the job of an analyst is to provide guidance “looking forward”. These are also the same morons (Wall St, not just ML) who want Apple to license WMA and put it in the iPod.

  3. Ahh Merrill Lynch have not be that bold. I have written in these threads that after the financial results AAPL would have receive $50 as target.

    1 $ shy of the truth.

    And it will break $50 by end of year.

  4. The “delayed switcher” is real. I have a co-worker who has no intention of spending money on a computer while he has a working PC. But he figures it won’t be long before he needs to replace it, and he’s seriously thinking about getting a Mac. I showed him the iMac G5 and he liked what he saw.

  5. Hey Perry, I really need to get that money I loaned you back, now! With interest, I think it’s close to $200,000, but I’ll settle for about 4000 shares of AAPL. d:-D

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