Slight upside for Apple?

Apple will likely report a slight upside to Wall Street's estimated $0.78 on $6.42 billion today after the market closes, according to Piper Jaffray senior analyst Gene Munster. "Based on our checks with Apple specialist stores and NPD data, we believe Apple will report slightly ahead of expectations for both iPod and Mac units," the analyst wrote in a research note obtained by MacNN. Munster points to APple's historic pattern of guiding conservatively, and believes the Cupertino-based company will guide in-line at best with Wall Street's consensus for the March quarter. "The Street will likely not be alarmed by this, given the company's track record of guiding low and beating over the last several quarters," said Munster, who performed checks with 20 Apple specialist stores and expects multiple growth drivers in 2007 and beyond. Piper Jaffray maintains its 'outperform' rating on Apple shares with a price target of $99, which the company says is under evaluation until Apple reveals its holiday quarter financial results this afternoon.

Near-term drivers for Apple's growth include continued Mac market share gains, according to the analyst, as well as the forthcoming release of Mac OS X 10.5 Leopard in the next 3-4 months and the Apple TV device that is due to ship in February. Long-term growth drivers include the iPhone -- which is expected to launch in June, increasing iTunes library content with more video offerings, and other currently unknown Apple innovations.

by MacNN Staff