UBS analyst Ben Reitzes said Friday that Appleis announcement that there will be "significant changes" in the companyis third quarter results refers to a required question from the Securities and Exchange Commission (SEC) about earnings comparisons. The SEC was actually asking Apple to compare its third quarter results from 2005 to its results for the same quarter this year.
Mr. Reitzes believes that there will not be any changes to the third quarter 2006 earnings that Apple just reported.
The announcement will, however, likely lead to a "tug-of-war" for shares as investors balance the news with potential gains from products Apple is expected to release later this year.
Mr. Reitzes said, "We still expect new iPod nanos to be unveiled in September, and new video iPods in October or November, perhaps with new iTunes movie services. We also believe a compelling cell phone is in the works, but may not be unveiled until 2007."
UBS is maintaining its "Buy" rating for Apple with a target price of US$80. Apple stock is currently trading at $63.68, down 0.39 (0.61%).