iPod Mania Continues: Broker Gives Apple Shares a $100 Price Target

Broker Piper Jaffray has put a $100 price target on shares of Apple, nearly double what the stock is currently trading at, notes CBS MarketWatch. The firm arrived at the lofty goal after findings from its own survey of iPod users showed that Apple has established a newfound level of brand loyalty and brand interest across its line of products.

"We believe that the remarkable satisfaction with the iPod creates a word-of-mouth wildfire that generates new customer interest in Apple products." At $100 the stock would trade at relatively inflated 37 times the brokeris calendar 2006 earnings for the company. "While this multiple is a premium to the comp group, we believe it is warranted given the growth potential of the iPod and its carryover to the core Mac business."

Back in September, Piper Jaffray said it expects Apple will grow its market share in computers in computers over the next two years as a result of products like the iPod and G5 iMac. In October, the firm reiterated that iPod demand will drive interest in Appleis other products. Other firms have echoed the so-called "halo effect," of the iPod, although to date that effect has yet to be realized as Apple sold about as many Macs in the last few quarters as it did in corresponding quarters during the past couple years.

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