Apple Computer shares rise on target price increase, positive iTunes sales forecast

“Apple Computer Inc. shares rose more than 3% Wednesday as another Wall Street analyst raised her price target on the company’s stock and another said that Apple’s iTunes sales continue to appear to be strong,” Rex Crum reports for MarketWatch.

Crum reports, “Apple (AAPL) saw its shares rise $2.91 to close at $89.05, after Morgan Stanley’s Rebecca Runkle lifted her price target on the stock to $110 from $90, and also raised her 2007 earnings outlook to $3.13 a share from $2.58. Runkle said she anticipates Apple shares trading even higher in 2007 after appreciating almost 20% this year.
Runkle based her view about Apple on new products that are expected for next year, saying that she believes an expanded product portfolio and market-share gains will boost the stock in the coming 12 months.”

Crum reports, “There had been some speculation that sales of songs through the iPod’s companion iTunes Music Store were declining, but Piper Jaffray analyst Gene Munster said that such fears have been overstated. In a research note, Munster wrote that between January and September, Apple sold an average of 18.5 million songs a week through iTunes, up from 10.4 million a week over the same period in 2005. He said that Apple should see even more sales from iTunes in the coming weeks. ‘iTunes sales spike upward in January,’ according to Munster. ‘We attribute this post-holiday growth to new iPod owners and iTunes gift-card users. We expect another uptick in early 2007.'”

Full article here.

Related articles:
Forrester’s Bernoff: ‘iTunes sales are NOT plummeting! Press credibility, on the other hand…’ – December 13, 2006
Jim Cramer on Apple iTunes Store and ‘that stupid Forrester survey’ – December 13, 2006
Piper Jaffray: Apple iTunes Store sales show strong year-over-year growth – December 13, 2006
Morgan Stanley ups Apple Computer price target to $110 – December 13, 2006
Apple on Forrester report: ‘the conclusion that iTunes sales are slowing is simply incorrect’ – December 12, 2006
Blackfriars’ does the math: Apple iTunes sales are not ‘collapsing’ – December 12, 2006
iTunes interest climbs as one analyst claims falling sales – December 12, 2006
Akamai Net Usage Index for Digital Music measures real-time global consumption of online music – December 11, 2006
WSJ mistake: ‘digital-music sales have stalled for the first time since Apple launched iTunes Store’ – December 06, 2006
Digital downloads drive world music sales in first half of 2006 – October 13, 2006
Study reports the obvious: most music on iPods not from iTunes Store – September 17, 2006
Apple iTunes Gift Cards help boost growth of digital music in U.S. – April 21, 2006

9 Comments

  1. As noted today by Forrester, it’s the music industry that has the most to lose by declining sales not Apple.

    Apple makes very little money with the iTunes store. It makes money selling hardware. Hardware can’t be pirated or “traded”

    If any stocks should be tankning it’s the media outlets parent companies who are mis-reporting the news which also own the music labels!

    The stock market is like a heard of cows. Stupid and skitish.

  2. Agreed. It’s the HAREWARE that’s flying off the shelves that makes the difference – iTunes is just CONTENT that allows the HARDWARE fly off the shelves – the REAL money is made on the HARDWARE – duhh!

  3. Apple is one of those roller-coaster stocks. I truly believe the brokers work together to bring it up and then instigate a run on the stock to drop it down again, once they’ve sold their assets.

    Maybe the lack of real news and a lot of hype help them play these games.

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