updated 04:30 pm EST, Thu February 24, 2005
AAPL target raised
Needham & Co. analyst Charlie Wolf has raised his target price on Apple from $83 to $104 a share. The firm also raised its earnings per share estimates from $1.85 to $2.00 in fiscal 2005, and from $2.25 to $2.50 in 2006. Wolf reiterated his belief that 11% of Windows users owning iPods will purchase a Mac, and notes that sales at the iTunes Music Store have accelerated to a $450 million annual run rate. "The increase in music sales in combination with a decrease in peripheral sales in our revised model raises Apple's overall gross profits because music sales are much more profitable than peripheral sales," Wolf said. Needham maintains a 'Buy' rating on Apple.