Apple rallies in pre-market trading as slew of analysts issue upgrades and boost earnings estimates

“Apple Computer rallied [today] in speculative pre-open trade, boosting Nasdaq 100 futures,” Abby Deveney reports for CBS MarketWatch. “Analysts lifted their estimates for earnings and revenue growth at Apple Computer (AAPL) after the iPod maker’s fiscal first quarter came in well ahead of the estimates. J.P. Morgan is projecting March quarter earnings of 47 cents a share, up from its prior estimate at 34 cents a share. The broker now sees revenue at $3.035 billion, up from a view earlier at $3.007 billion. UBS raised its fiscal second quarter earnings per share estimate to 41 cents from an earlier 29 cents ‘to factor in higher sales of Macs & iPods…. We continue to believe that the iPod phenomenon is driving upside in Apple retail stores, sales of peripherals/accessories and now-Macs,’ the broker told clients. Apple shares were up 11 percent in European trade of U.S. stocks – in line with the surge late Wednesday after the PC maker’s quarterly report.”

“Soleil Securities upgraded Apple Computer to ‘buy’ from ‘hold.’ Analyst Shannon Cross raised his fiscal 2005 earnings estimate to $2.05 a share from $1.52 and his 2006 forecast to $2.22 a share from $1.79,” Deveney reports. “Prudential Sec. upgraded Apple Computer to ‘overweight’ from ‘neutral weight,’ the earnings report. Analyst Steven Fortuna also raised his stock price target to $93 from $75, lifted his 2005 earnings estimate to $2.15 a share from $1.65 and bumped up his revenue forecast to $12.9 billion from $11.8 billion.”

Deveney reports, “Bank of America also upgraded Apple Computer to a ‘buy’ from ‘neutral’ following the tech firm’s introduction of a cheaper iPod and an entry-level Mini Mac desk top computer. The broker raised Apple’s earnings per share estimates for 2005 to $1.87 from $1.64 and up to $2.16 from $1.95 for 2006.”

Full article here.

NASDAQ pre-market AAPL quote (15-minute delay) here.


  1. This is just a fantastic time to be a Mac user! I switched from the PC world 18 months ago and its just been getting better each day. I am excited to see how the Mac Mini plays out over the coming months

  2. Has anyone noticed that the Wall Street “experts” always lag the Apple story? I thought the advisory role in investing was to help people MAKE money- not see missed opportunities.

  3. I grin and grimace whenever the mainstream investment analysts upgrade AAPL after the stock surges. Where were they a year ago? Mostly saying “sell” (ignore.)

    Anybody who listens to these idiots at this point for anything but a “me too” confirmation of what has gone before might as well look at yesterday’s weather page to decide what to wear today.

  4. Anyone who users stockbokers and investment advisers are only burning their own money. Few if any outperform the indexes anyway. Save money and buy index trackers – or buy Apple at $17 of course.

  5. The minute I saw the Mac mini I sold off there non performing stocks I had and bought AAPL and am very glad I did. When Apple’s market share starts growing more you are really gonna see something. I hope it splits at around 120.

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