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 25th

Mon,12:40 PM
Three Ways to Protect your Apple Watch (and One Way Not To)
Mon,10:42 PM
Google Brings Higher Resolution Satellite Imagery to Google Earth and Maps
9:10 PM
Google Bloks Will Offer Kids Hands-On, Collaborative Programming Concepts
8:44 PM
PRE-SALE: The Complete iOS 10 Developer Course at $29
5:15 PM
Game Foul: Ford Dealership Steals Firewatch Art
5:04 PM
TMO Background Mode: Interview With Symply Co-founder and President Alex Grossman
3:20 PM
iPhone 7 Sans Headphone Jack: The Debate Continues
1:58 PM
TMO Daily Observations 2016-06-27: AAPL, Brexit, Google Blocks
11:58 AM
Google Ready to Try Apple’s Tactics with New Smartphone
9:33 AM
Apple gets its Rainbow on for SF Pride Parade
Sun,12:18 PM
MGG 611: Troubleshoot & Resolve Your Mac & Apple Issues
Fri,7:00 PM
Apple Kills the Thunderbolt Display - Will the Mac Pro Be Next?
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!