UBS Reinstates AAPL Coverage, New Macs on the Way

UBS Investment Research replaced Ben Reitzes as its primary Apple stock analyst with Maynard Um on Tuesday. Mr. Um hit the ground running and is already predicting new Macs, iPhones, and ultra-portable computers are on the way.

Mr. Um picked up where Mr. Reitzes left off -- with a coverage lapse of several months -- after Mr. Reitzes moved on to Lehman to cover the technology sector.

Mr. Um predicted Apple has several new product announcements coming in the second half of 2008 and early 2009. "Based on our checks, we expect new Macs, new iPhone colors, and potentially new iPods in early calendar 2H08," he said.

He added that he thinks Apple is preparing to launch a new ultra-portable Mac and a new iPhone model early in 2009.

He also thinks that Apple will overshoot its conservative guidance for this quarter to post better than expected earnings. He said "We believe new product refreshes, continued iPhone sales, demand elasticity to lower pricing, and channel and country expansion are the key drivers."

Mr. Um has a "Buy" rating and US$195 target price for Appleis stock. Apple is currently trading at $157.47, up 4.02 (2.62%).

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