iPod video sales estimates

Shares of Apple were up in premarket activity Tuesday after one analyst said that the in the December quarter. UBS analyst Benjamin Reitzes said that Apple accelerating toward the digital entertainment and media arena through new hardware, content and services and raised estimates for both Apple's stock price to $86 and first-quarter earnings for the second time, according to the AP: "We believe that Apple is experiencing a positive mix shift toward video iPods and to a lesser extent, iMacs," he said in a report. "In addition to solid holiday sales, we believe investors will focus more on potential new products at Macworld in January, including a few new Macs and other new initiatives."

Reitzes raised his first-quarter estimates to 58 cents per share from 53 cents and forecast a 50 percent increase in revenue to about $5.2 billion.The report notes that Wall Street consensus projections for Apple are 48 cents per share on revenue of $4.48 billion, according to Thomson Financial.

The UBS analyst predicts Apple's stock will hit $86 within the next 12 months -- up from his previous target of $74, according to the report.

by MacNN Staff