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Merrill Lynch, UBS raise Apple’s target price

Hot on the heels of Piper Jaffray’s increase in Apple’s target price last week, both UBS and Merrill Lynch have followed suit. UBS raised its forecasts for Apple saying a survey of U.S. retailers showed strong demand for its higher margin iPod photo and iPod mini as well as iMacs and accessories. UBS upped its share price target to US$77 from $66 on a raised FY 2005 revenue forecast of $11.1bn (was $10.9bn). Merrill Lynch raised its target price and fiscal year 2005 and 2006 estimates for Apple, saying it expected the company to sell 4 million iPods in the December quarter, up from 3.5 million and 12.9 million for fiscal 2005 up from 10.7 million. Merrill upped its target share price to $78 from $61 and raised its fiscal year 2005 earnings per share estimate to $1.45 from $1.38. In addition, the broker told investors to look out for a flash memory-based iPod from Apple in the first quarter and other possible exciting products such as an entertainment server.

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