updated 03:25 pm EDT, Mon September 25, 2006
Apple approaches catalysts
ThinkEquity analyst Jonathan Hoopes today said that "significant catalysts" coupled with strengthening demand for core Mac systems will boost Apple's revenue trajectory, earnings power, and price valuation in the near term. The analyst raised his price target on Apple shares from $90 to $100, and noted the potential for profits up to $400 million from Mac OS X Leopard in the year following its release. The analyst points to Apple's strong back-to-school season, new product as well as software launches -- which will include Mac OS X Leopard, a new version of iLife, and iTV's launch -- and success in the enterprise market later in 2007. Additionally, Apple will benefit from pent-up demand in European markets, even as Apple retail stores appear ready to deliver solid September and December quarters, according to Barron's. "Never in the history of the PC has a company been better positioned than Apple is at this time to both gain share and improve profitability... Apple's software holds the key to additional share gains and margin expansion."