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:
BofA Adds to Apple's Projected EPS, Drops Stock Target Price by $1

TMO Reports - BofA Adds to Apple's Projected EPS, Drops Stock Target Price by $1

by , 4:05 PM EDT, July 7th, 2005

Bank of America Securities analyst Keith Bachman on Thursday released a brief research report obtained by The Mac Observer. In it, Mr. Bachman states that the "two key metrics" to focus on regarding Apple are iPod units and computer sales growth rates. With 5.4 million iPods in his sales forecast and a Mac sales growth rate of 25%-28%, he reiterated his "Buy" rating on the company's stock and added US$0.03 to his EPS (earnings per share) forecast for the current fiscal year and $0.04 to the number for next year, bringing them to $1.32 and $1.44, respectively. However, he did drop his twelve-month stock price target from $44 to $43 "based on lower comparable multiples."

Mr. Bachman also used the report to address recent issues surrounding Apple, acknowledging that he thinks "iPod shuffle demand has been weak, through iPod mini demand has been strong. We expect a new shuffle in the next few months, and believe an LCD-based refresh is needed. For [computer] systems, we think that demand for the iMac has been strong, and the Mac mini has been weak." However, he only expects sales of Mac OS X v10.4 "Tiger" to add a penny or two to EPS this quarter, not the nickel some analysts have forecasted.

Looking ahead, Mr. Bachman wrote that he would become more bullish on the stock if Apple's Mac sales grow 30% or more and if he sees his 2006 forecast for iPod sales to grow more than 20%. On the flip side, he'd become more bearish if Mac sales grow less than 20% or if iPod unit sales come in at less than 5 million for the current quarter. An increase in price competition would also cause him to react negatively.


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 TMO Headlines - Updated October 22nd

Fri, 9:07 PM
Inside Apple Michigan Ave Store Opening in Chicago (Photos)
Fri, 8:07 PM
Get a Head Start on Your iPhone X Preorder on October 23
Fri, 7:12 PM
Apple Poaches Amazon Video Exec to Head International Development
Fri, 6:07 PM
Google Finds a Workaround for Apple's Intelligent Tracking Prevention
Fri, 3:52 PM
MOD-t (2nd Gen) 3D Printer on Kickstarter: $300 for a Self-Contained Consumer 3D Printer
Fri, 3:51 PM
iOS 11: How to Share Documents from the Files App
Fri, 3:12 PM
Our Top 5 Picks For Apple Watch Photography Apps
Fri, 2:41 PM
Apple Releases iOS 11.1 Developer Beta 4 with Bug Fixes
Fri, 2:32 PM
Use Your Apple Watch Digital Crown to Zoom Photos
Fri, 2:30 PM
Apple Fixes Several Bugs with watchOS 4.1 Developer Beta 4
Fri, 2:05 PM
Check Out This Cool Cyperpunk Horror Game Coming to Mac [Trailer]
Fri, 1:23 PM
Animoji Trademark Lawsuit, Apple's Sloppy UI Problem - TMO Daily Observations 2017-10-20
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!