First Albany Issues "Neutral" On AAPL, Merrill Issues "Buy"

by , 6:00 PM EDT, June 23rd, 2004

First Albany has raised Apple's estimates for fiscal 2004 and 2005, and issued a "Neutral" rating for the company's stock today. NewRatings.com reports that First Albany has raised earnings estimates for the company 61 cents per share to 65 cents per share for fiscal 2004, and 72 cents per share to 88 cents per share for fiscal 2005. From NewRatings' report:

According to First Albany's research note published this morning, Apple Computer is likely to witness re-accelerated momentum in iPod's unit growth by the September quarter. The analysts mention that the company is poised for robust near term unit growth in its iPod Mini and iTunes products in the European market. Moreover, First Albany expects Apple Computer to benefit considerably from its summer launch of the HPod product in the forthcoming quarters.

The analysts anticipate relatively modest sequential growth in Apple Computer's iPod shipments in the current quarter, primarily due to the persisting supply constraints associated with its iPod Mini product. First Albany expects the company to resolve these supply constraints by 4Q FY04. However, the current valuation of Apple Computer's stock has limited upside potential, as compared to the company's near-term earnings and revenue growth outlook, the analysts believe.

NewRatings also reported that Merrill Lynch reiterated a "Buy" rating for AAPL, raising the target price for the stock from US$32 per share to US$38 per share.

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.