Standard & Poor Reiterates Apple 'Hold' Rating

On the heels of news that the company may introduce a video iPod by September, Standard & Pooris Equity Research reiterated a "hold" rating on Apple Computer (AAPL) Monday.

"We believe the evolution of the iPod as a platform for video content was largely expected, and market speculation, we believe, started with the introduction of a color screen on the iPods last year," wrote Computer Hardware Equity analyst Megan Graham-Hackett. "We note that music videos are already available with iTunes service. We believe that like the music service, AAPL will make money from device sales vs. content sales."

Ms. Graham-Hackett wrote that the firm sees Apple stock, which trades above peers on P/S basis, "as fairly valued given our view of its strong cash levels, iPod leverage."