Merrill Lynch has reinstated coverage of Apple with a “buy” rating and a price target of US$29. “We think Apple has gotten its act together in focusing on core markets, building a mature management team and, most important, innovating again. People will pay more for Porsches, but they have to perform,” Merrill Lynch said. The firm projected that Apple’s iPod and iTunes Music Store will account for 9 percent of 2004 sales, but said that percentage should grow in later years. “We think iPod’s leading position is defendable for perhaps two years and is important to Apple’s ‘cool’ image.”