UBS: Apple Computer ‘buy,’ target price reduced; Merrill Lynch lowers estimates

Analysts at UBS today reiterated their “buy” rating on Apple Computer (AAPL). The target price has been reduced from $95 to $90.

Also today, “Merrill Lynch today lowered its June quarter iPod sales estimates from 10.7 million to 9.2 million based on a deceleration in March. The firm cut fiscal year 2006 iPod sales estimates from 47.1 million to 43.4 million, and adjusted June quarter revenue and earnings per share estimations to reflect Apple’s financial results during its second quarter. Merrill Lynch expects Fiscal 2006 earnings per share to total $2.13, down from $2.20, and fiscal 2007 estimates fell to $2.84 from $2.94,” MacNN reports.

Full article here.

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  1. These analysts have absolutely no

    ‘Überblick’ whatsoever.

    None at all.

    AAPL at the price they are now are a bargain.

    If you buy now … and hold … let’s say until late January 2007 – that’s only 9 months away – you’re going to double or treble your original stake.

    That’s a promise.

  2. The stock has never been given a chance to come down properly and find its botom or level.

    last time it was headed under $58 ( recently ), Apple released some news ,i cant remember what the news was.

    then it jumped to $63 basicly and then started going again, was headed under $60, apple released some other news sending stock back to $64+

    then it was headed town again, and apple released the boot camp news and stock went to $72 only to come down to under $64, now there has been the earnings news which sent the stock back above $67.

    So without news, the stock is POISED to go down. it has no intentions of staying at where it is or going higher unless there is some fresh good news from Apple.

    if you do not believe me, just take a look at the charts since the begining of the year ( 2006 ) , every bounce has been due to a news, not an organic stabilization.

    would i buy the stock at this price?

    i am tempted to given the fact that Steve jobs indeed will release some new products however… that said.. the gaps of time inbetween those products will push the stock lower and lower.

    so i would rather buy the stock at proper times, such as when i know it has been 2-3 weeks without anything new and something has to be on the way..

  3. Buy AAPL now if you want to make money; sell AAPL now if you want to loose money. Don’t buy AAPL now if you don’t want to make any money.

    There! ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  4. “DON’T BUY” is just the idiot MacDude. Apple’s fundamentals are great. Any analyst who pretends otherwise doesn’t know what he’s talking about. $90 is the minimum by the end of the year–$100 is more likely.

  5. Broadly speaking – on the iPod front – Merrill Lynch are about right: Apple should sell about 9.0 million units in this quarter and about 11 million in the final quarter of FY2006. That would mean about 42.5 million iPods for FY2006 which still compares pretty well to the 22.5 million sold for FY2005. Even better is the fact that average price/unit is resisting any kind of deflation – unlike the cost/unit where the move to solid-state is yielding massive cost benefits – so they’ll probably land up achieving around $200 per unit for FY2006 which is broadly in line with what they achieved in FY2005.

    ML is presumably saying that Apple is going to have profits of around $1.9 billion for FY2006, which means that Apple is going to have to generate around $20 billion in sales.

    42.5 million iPods @ $200 is $8.5 billion. However, the new iBooks and a new 17″ MacBook Pro would probably see Apple shift around 5.7 million CPUs for FY2006 at around $1300/unit which comes to nearly $7.5 billion. Add in another $4 billion for iTunes, software, displays and iPod socks (!) and you’re looking at around $20.5 billion. So, now the only question is how much you think the company is worth: personally, taking into account the cash pile and everything else, I would think around $69 billion seems a fair price: divide that by 900 million shares and $76 seems to be where you end up.

  6. Aren’t all these analysts who are now raising their price targets for Apple the exact same ones who lowered it just a week ago? Make up your minds! It seems that Shaw Wu (don’t remember who he works for) is the only one who “gets it”. He’s consistently been positive on Apple’s future and sees their tremendous potential.

    Just wait for the Leopard preview in August. I think Apple has something really big and really sweet up their sleeve.

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