updated 02:00 pm EDT, Thu April 20, 2006
UBS drops estimates
Investment firm UBS today lowered its price target to $90 from $95 on Apple shares, but maintained its "buy" rating on the stock due to beliefs that the second quarter could mark the "trough" in revenue for the calendar year. Analyst Ben Reitzes believes growth in Mac sales during such a tough transition quarter bodes well for future share gain potential, even as iPod sales numbered 8.5 million units, well beneath his estimate of 9.6 million. "We are adjusting estimates to reflect lower iPods, partially offset by higher Mac sales," Reitzes wrote in a research note. UBS estimates revenue of $4.4 billion for the third quarter of 2006, down from $4.6 billion. The company predicts that 2006 fiscal year revenue will amount to $19.3 billion, down from almost 20 billion, with earnings per share of $2.03 -- down from $2.10.