Apple Computer "buy," estimates raised

07/14/05 - First Albany

NEW YORK, July 14 (newratings.com) - Analysts at First Albany reiterate their "buy" rating on Apple Computer (AAPL), while raising their estimates for the company. The target price is set to $44.

In a research note published this morning, the analysts mention that the company reported its 3Q EPS and revenues ahead of the estimates and the consensus. Apple Computer’s gross margins were significantly ahead of the prior guidance due to robust Tiger sales and better-than-anticipated component costs, the analysts say. The company has indicated that the iPod shipments reflected a sell-through and the ending product inventories were within its target range. First Albany considers Apple Computer’s revenue and EPS guidance for 4Q conservative. The EPS estimates for 2005 and 2006 have been raised from $1.35 to $1.40 and from $1.56 to $1.60, respectively.