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:
UBS Optimistic About Apple's Long Term

UBS Optimistic About Apple's Long Term

by , 8:30 AM EST, January 30th, 2006

UBS Analyst, Ben Reitzes, thinks that Apple has a very positive long-term outlook, despite current sentiments of some other financial analysts. He feels that Apple's shares have dropped 17 percent based on concerns about declines in iPod nano sales, the possibility of competition from Google and Microsoft, and the recent slew of negative news stories.

Although Mac sales may remain soft for the next few weeks in anticipation of more Intel-based models, sales should pick up again as new products hit the market. Mr. Reitzes anticipates we may see a new Intel-based iBook as early as April, as well as a new "media hub" product and related services later this year. He also speculates that Apple will release new iPod models, including a new media player before the end of the year, and possibly even an Apple-branded cell phone.

UBS is cutting only its near-term estimate for 2Q EPS from US$0.50 to $0.46 on revenue of $4.7 billion due to expected modestly lower Mac and iPod sales. The fiscal 2006 EPS estimate is now $2.14, down from $2.24 on revenue of $20.5 billion. Fiscal 2007's EPS, however, remains at $2.75.

UBS is maintaining its target price of $100 based on pent-up demand for new products, as well as the potential growth in digital content.

Apple stock is currently trading in the pre-market at $71.46, down 0.57 (0.79%).


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 July 30th

Thu,10:50 AM
New Patents Hint at Apple Texture-simulating Uber Stylus
9:23 AM
Those Awesome LEGO Star Wars Pics are Now in a Book
Wed,9:18 PM
Apple Campus 2 Will Have Full Blown Visitor Center with Store, Cafe, Observation Deck
8:30 PM
ACM 317: T-Mobile’s Crazy iPhone Deal, Fitness Tracking Accuracy, Listener Comments
7:25 PM
iFixit Pro Tech Screwdriver Set and Jimmy Bundle: $59.95
3:10 PM
How to Pre-authorize Your iPhone to Use Apple Pay
12:58 PM
TMO Daily Observations 2015-07-29: Fitness Tracker Accuracy, Logitech’s new Mouse
10:15 AM
Photoshop CS6 Stragglers Out of Luck for Camera Raw Updates
8:55 AM
iOS: Deleting Siri’s Training Data
Tue,8:06 PM
Buy iPhone 6 from T-Mobile Now, Swap for iPhone 6s for Free, Apple Music Exempt from Data Limits
7:10 PM
CoMacadore Plus - Mac OS 6.0.1 Running on an Amiga 500
6:11 PM
Your Fitness Tracker May be Wrong, but that Doesn’t Make it Bad
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!