Citigroup Cuts Apple Target Price

Despite the fact that Apple posted record numbers for for the first quarter of fiscal 2006, not every analyst was pleased, and Citigroup has lowered its target price for Apple from US$85 to $82. According to MarketWatch, The change is based on Appleis revenue guidance for the second quarter. The computer maker is expecting to see revenues at $4.4 billion, well below Citigroupis estimate of $5.1 billion.

Citigroup also stated that it does not see any near-term positive or negative catalysts, and feels that Appleis guidance may be conservative.

The lower earnings estimate is based on the potential that Apple will not be able to meet consumer demand for the soon to be released Intel-based MacBook Pro. After its debut at Macworld Expo on January 10, interest in the new Intel-based laptop has been higher than anticipated.

The company plans on air-freighting MacBooks to customers to help meet demand. Although more expensive, Apple has shipped new products via air in the past in an effort to get them in customeris hands quicker.

Apple also acknowledged that some customers have been holding off on purchasing new computers in anticipation of the Intel-based models. Apple started shipping an Intel-based iMac on January 10, and plans of transitioning the entire product line by the end of 2006.

Apple is currently trading in the pre-market at US$82.49, down .69 (0.84%).

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