The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Merrill Lynch Raises Apple Target Price to $49

Merrill Lynch Raises Apple Target Price to $49

by , 6:50 AM EDT, October 14th, 2004

In what is expected to be the first of many analyst recommendations the day after Apple reported its fiscal fourth-quarter profit more than doubled, Merrill Lynch analyst Steve Milunovich raised his price target on Apple Computer shares on Thursday to US$49 from $44.

Mr. Milunovich raised the earnings estimate for fiscal 2005 to $1.20 a share from 95 cents a share. Apple's strong earnings in the quarter were "entirely in iPods as Mac sales suffered from continued shortages of the G5 chip from IBM," Mr. Milunovich wrote to clients. "Because we believe in the 'halo effect' of iPod, the positive impact on Mac sales may still be coming."

The 'halo effect' is the latest buzz word among investment analysts for consumers who have bought or are interested in the company's line of portable music players only to end up buying a Macintosh personal computer as well. Possibly a contributing factor to the 'halo effect': Tim Cook, Apple's Executive Vice President of World Wide Sales and Operations, told analysts Wednesday that 45% to 50% of CPU buyers at Apple's retail stores are former Windows users or new to the Mac.

Recent Headlines - Updated April 29th

Mon,12:40 PM
Three Ways to Protect your Apple Watch (and One Way Not To)
Fri,5:30 PM
New Products Apple Might Give Us While We Wait for the Car
4:42 PM
Nomad Pod Portable Apple Watch Battery Pack: $33.95
4:40 PM
FBI Director in the Dark on iPhone Hack Details
2:36 PM
How to Select Single Pics from Burst Photos on Your iPhone
1:30 PM
SolarTab Portable Solar Panel is a Bright Spot in Outdoor Charging Solutions
12:00 PM
TMO Daily Observations 2016-04-29: Kicking Off a New Apple Conference
9:15 AM
Changing Your Wi-Fi Channel for Improved Speed
Thu,7:59 PM
Carl Icahn Isn’t Wrong about Apple in China
5:54 PM
House Passes Email Search Warrant Bill
3:20 PM
Roxio Toast 14 Titanium for Mac: $49
3:00 PM
Griffin’s BreakSafe USB-C Cable Replicates MagSafe For the Apple MacBook
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!