Merrill Lynch has upped Apple Computer (AAPL) to “Buy” from “Neutral” and raised its price target to $72 citing increased confidence in Mac share gains and easing concerns of decelerating iPod sales.

In other action, UBS raised their price target on AAPL to $80 from $77 and maintained a “buy” rating on Apple shares.

Related articles:
Apple shares rocket over 12% in pre-market trading on strong earnings report – July 20, 2006
‘Fantastic quarter’ helps Apple double share of U.S. retail notebook market to 12% – July 19, 2006
Apple Q3 2006 Conference Call notes – July 19, 2006
Apple reports third quarter results: $0.54 per share on $4.37 billion in revenue – July 19, 2006