UBS Investment Research is pleased with the potential for continued growth in iPod and Macintosh sales, according to a report issued on Monday. The investment company sees a great deal of excitement surrounding the iPod nano, digital video downloads, and the new iMac G5.
Based on the potential growth in Apple product sales, UBS raised its first quarter 2006 earnings estimate from US$0.50 to $0.53, and is estimating iPod quarterly sales may hit 11.3 million units.
UBS is also raising its earnings estimate for fiscal 2006 from $1.78 to $1.85, based on the strong momentum of iPod and Mac sales.
Looking forward to Macworld 2006 in San Francisco, UBS believes that Apple will introduce more video content and digital entertainment offerings, and may even introduce an Intel-based Mac mini.
UBS has raised its target price for Apple to $74, up from $64 only a month ago. Appleis stock is currently trading at $61, down .15 (.25%).