“Apple Inc. shares climbed to their highest point in almost three months on Monday after an analyst raised his rating on the stock due to several factors that should lead to long-term growth at the company,” Rex Crum reports for MarketWatch.
“Analyst Doug Reid of Thomas Weisel Partners raised his rating on Apple’s stock to overweight from market weight, and lifted his price target to $195 from $188, saying that the stock’s current valuation “excessively discounts” the company’s long-term growth prospects,” Crum reports.
“Among the reasons Reid gave for raising his rating and price target were the likelihood of the Macintosh PC line and the iPhone driving Apple’s revenue growth over at least the next two fiscal years,” Crum reports.
“In a research note, Reid said he expects Mac sales to reach $14.2 billion in Apple’s 2008 fiscal year, which ends in September. Such sales would be a 38% increase over the prior fiscal year, and well above Reid’s estimate for 3% growth for the entire PC industr,” Crum reports.
“Reid said one of the factors benefiting Apple remains its ‘superior design and performance,’ and that despite recent efforts by Dell Inc. and Hewlett-Packard Co. to improve their product designs, “our confidence in Apple’s ability to maintain leadership of the aesthetic is undiminished,'” Crum reports.
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