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 November 22nd

Fri,6:57 PM
Apple Makes ‘Things for iPad’ Free for a Week
6:47 PM
Judge Approves Apple iBooks $450 Million Antitrust Settlement
5:54 PM
100 AA and 52 AAA Duracell Batteries for $59.99 [Extended]
5:18 PM
Use a PDF to See How Big Apple Watches Really Are
4:45 PM
Why Every Estimate for Apple Watch Sales in 2015 is Completely Wrong
4:30 PM
‘Kingdom Rush Origins’ Tower Defender Released for iPhone and iPad
1:42 PM
TMO Daily Observations: 2014-11-21
11:53 AM
Google Agrees to Settlement in Rockstar Patent Infringement Fight
9:44 AM
Apple Blocks Outdated Flash Players Over Security Issues [Update]
9:00 AM
iOS 8: Using “Send Last Location”
Thu,8:05 PM
SwiftKey Adds Languages in iOS Without App Store Updates
7:53 PM
Apple Reportedly Plans Cheaper Beats Music in iOS in 2015
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!