Wall Street Analyst Says 970 Is Coming, Upgrades Apple's Stock

by , 2:00 PM EDT, June 18th, 2003

It would seem that a move to the PowerPC 970 may be one of the worst-kept secrets at Apple since the return of Steve Jobs to the company. While rumor sites have been ablaze with stories about the 970, and speculation about such a move has been rampant since IBM first announced the processor last year, a Wall Street analyst has come right out and said that Apple is about to move to the 970.

Charles Wolf, a respected analyst and Apple watcher with Needham & Co., has issued an upgrade to Apple's stock from a Hold to a Buy based on the strength of the iPod and a move to the 970 by the end of this month. He also set a target of US$23 a share. From an article at TheStreet.com:

iPod sales have increased unexpectedly since late April after the launch of the iTunes Music Store and the availability of new iPods, Wolf said. He added, "Sales of the iPod should receive an additional boost when Apple ports its award-winning iTunes jukebox software, which powers the iPod, to the Windows platform later this year."

Regarding the company's PowerMac computer line, Wolf expects sales could rebound in the first quarter of 2004. He said he expects a narrowing of the gigahertz gap between PowerMac and Windows machines when Apple unveils its new PowerMacs that run on IBM's 970 processor family in late June. He added that the graphics application Quark Express was released for Mac OS X last week, and said demand for the PowerMac could possibly increase among graphics professionals.

Note that June is almost over. You can find more information in the full article at TheStreet.com.

Apple's stock is trading higher by more than 6% as of this writing, at 19.37, up 1.18 (+6.49%), on moderately strong volume.

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The Mac Observer Spin:

It doesn't get much more official than that. Charles Wolf groks Apple, and we have followed his comments for years. While it will still take the words coming from Steve Jobs, or perhaps some other vehicle, to make it truly official, Wall Street seems to think that Mr. Wolf's comments are good news.