Deutsche Bank has initiated coverage of Apple Computer (AAPL) with a “buy” rating and set a price target for Apple of $60, according to Forbes.com. Deutsche Bank predicts Apple will continue to gain share in both the digital music and PC markets. Apple will continue to drive share gains in the PC market due to the combination of a renewed enthusiasm for Apple’s brand, cutting-edge computer designs, and the superior user experience of Apple’s OS, according to Deutsche Bank. The firm also expects Apple to drive strong earnings and cash-flow growth as it capitalizes on the growth of the MP3 market over the next three to five years.
The firm is forecasting sales of 31 million iPod units in calendar 2005 and 43 million units in calendar 2006, “Due its strong product portfolio, market-share leadership, and the stickiness of iTunes, we believe Apple will continue to dominate this product category.”
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43 million iPod units in 2006 is too conservative, in our opinion. We predict Apple will exceed that number. Think in excess of 50 million for 2006 and you’ll likely be closer to the actual number.
Analyst: Apple will sell 7.1 million iPods this quarter – August 26, 2005
Apple Computer could sell 21 million iPod shuffle units in 2005 – January 19, 2005
Smith Barney analyst expects Apple to sell 22 million ‘iPod flash’ units over next two years – December 10, 2004
Apple CFO says 3.7 million iPod units sold since introduction – July 15, 2004