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:
BofA Adds to Apple's Projected EPS, Drops Stock Target Price by $1

TMO Reports - BofA Adds to Apple's Projected EPS, Drops Stock Target Price by $1

by , 4:05 PM EDT, July 7th, 2005

Bank of America Securities analyst Keith Bachman on Thursday released a brief research report obtained by The Mac Observer. In it, Mr. Bachman states that the "two key metrics" to focus on regarding Apple are iPod units and computer sales growth rates. With 5.4 million iPods in his sales forecast and a Mac sales growth rate of 25%-28%, he reiterated his "Buy" rating on the company's stock and added US$0.03 to his EPS (earnings per share) forecast for the current fiscal year and $0.04 to the number for next year, bringing them to $1.32 and $1.44, respectively. However, he did drop his twelve-month stock price target from $44 to $43 "based on lower comparable multiples."

Mr. Bachman also used the report to address recent issues surrounding Apple, acknowledging that he thinks "iPod shuffle demand has been weak, through iPod mini demand has been strong. We expect a new shuffle in the next few months, and believe an LCD-based refresh is needed. For [computer] systems, we think that demand for the iMac has been strong, and the Mac mini has been weak." However, he only expects sales of Mac OS X v10.4 "Tiger" to add a penny or two to EPS this quarter, not the nickel some analysts have forecasted.

Looking ahead, Mr. Bachman wrote that he would become more bullish on the stock if Apple's Mac sales grow 30% or more and if he sees his 2006 forecast for iPod sales to grow more than 20%. On the flip side, he'd become more bearish if Mac sales grow less than 20% or if iPod unit sales come in at less than 5 million for the current quarter. An increase in price competition would also cause him to react negatively.


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Recent Headlines - Updated April 19th

Sat, 10:30 AM
Yet Another 25 Tips for Mastering iPhone Photography
Fri, 7:25 PM
Look Out Apple Haters, Android’s Monopoly on Large Screens Will End
5:20 PM
Why Apple Didn’t Try to Copy Google Glass
4:30 PM
Menu Bars Of The Stars
4:12 PM
How to Streamline System Preferences on Your Mac
2:56 PM
Microsoft Pilot Program Allows Developers to Respond to App Reviews
1:15 PM
Tavik’s Zippered Folio Case for iPad Air is Built for Travel
1:13 PM
Apple Maps Misses Your Coffee Shop, but Finds Loch Ness Monster
12:55 PM
Online Privacy: Track Which Apps Access Your Personal Information
10:56 AM
Judge Denies Rockstar Consortium’s Bid to Move Google Patent Fight to Troll Town
9:25 AM
Dropbox gets Deeper into Photo Management with Loom Purchase
8:40 AM
iTunes Radio: Create a Station from a Song or Artist
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!