This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Holiday Glow Shines on Apple

"We continue to believe that some Street estimates for iPod unit shipments for the December quarter are too high," said Munster, whose firm has not recently done investment banking for Apple. "We do not expect Apple will be able to ship the number of units that are already anticipated in some Street models."

Still, Munster found other reasons to be bullish on Apple. Demand should remain strong for both iPod products and the company's Macintosh computers, he said. Indeed, Apple's upcoming switch to processors made by Intel (INTC - Get Report) should spur a wide range of updates to the company's computer lineup, he said. In the past, such updates have led to increased sales.

Munster, too, raised his price target on Apple, going to $79 a share from $68. At that higher price, Apple's valuation would be 45 times its expected earnings over the next year, which is in line with its three-year average, he said.

"Apple's domination in digital music is a critical piece to the story, but we do not believe iPod is the only growth avenue for the company. Indirectly, we expect iPod to continue to be a foundation for growth in other parts of Apple's business," Munster said.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $132.83 0.14%
AMZN $433.25 -1.20%
BBY $35.73 1.10%
INTC $32.50 0.02%
TGT $81.54 0.20%


DOW 18,079.91 +41.94 0.23%
S&P 500 2,112.89 +3.97 0.19%
NASDAQ 5,064.0280 +3.7820 0.07%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs