“Credit Suisse First Boston raised the target price for Apple Computer to $70 from $40 and said the computer maker is poised to exceed prior sales guidance for the fiscal first quarter ended December. ‘With this season’s hottest CE [consumer electronics] product and a new product cycle in its flagship iMac, Apple is poised to significantly exceed its initial December quarter outlook issued on its fiscal fourth-quarter conference call in October,’ the research firm said. CSFB said its new target price of $70 represents a 34 times multiple on 2006 net operating profit after tax, ‘a level we believe more than adequately reflects Apple’s long term prospects,'” Forbes reports.
“CSFB said, ‘We believe Apple will ship 4.8 million iPods in the December quarter and will once again exit the quarter with a substantial backlog, mostly in international locales. This iPod number will fall short of some overly aggressive expectations mainly due to a shortage of hard drives, a problem that has plagued the company for over a year, but one we believe will finally be remedied in the calendar first quarter,'” Forbes reports.
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