Analysts had mixed reviews Thursday after Apple Computer's Wednesday meeting with industry experts at the company's headquarters in Cupertino, Calif. In a research note, PaineWebber said it found "no significant change in Apple's strategy" as a result of the meeting. Analyst Don Young said Apple commented that it will continue to focus on its consumer market.
Young also said Apple gave no details into its portable product IBook, which the security firm expected would already be shipping. The analysts maintained their "neutral" rating on the company, and added that the "long-term outlook for the platform is unclear."
Yet, Dan Niles and Alex Mou, analysts at BancBoston Robertson Stephens, increased their profit estimates on the company from $2.68 to $2.75 a share for 1999 and from $2.85 to $2.86 a share for 2000. First Call estimates earnings of $2.77 and $2.84 a share, respectively.
The analysts also said, "Given its consistent, focused product strategy, faster product cycle, improving visibility and strong execution, Apple's valuation appears attractive." BancBoston reiterated its "long-term attractive" rating on the company.
Meanwhile, Hambrecht & Quist analyst Walter Winnitzki said, "Apple has successfully repositioned its product marketing strategy (primarily with its IMac product) away from the operating system to the Internet to drive new first-time users to the company."
But, Winnitzki added, "the valuation of the shares is not compelling relative to earnings and the growth in earnings." He maintained his 1999 estimate of $2.76 and his "market perform" rating.
As of this writing [1:30 PM, CST], Apple is down 1 3/8.
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