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

Apple, Dell, H-P Poised for PC Rebound

CUPERTINO, Calif. ( TheStreet) -- Apple (AAPL - Get Report), Dell (DELL) and Hewlett-Packard (HPQ - Get Report) are set for a big PC revenue boost, according to new analyst data.

Using recent figures from research firm NPD, Piper Jaffray analyst Gene Munster predicted a continued uptick in Apple's Mac sales over the coming months.

"We expect the strong year-over-year growth in NPD data that we saw in January to continue in the month of February," he wrote in a note on Monday. "We believe this represents a buying opportunity ahead of NPD data for the month of February on March 15."

In his note to investors, Munster maintained his overweight Apple rating and price target of $284.

Apple shares hit a record high last week on news that the iPad will make its U.S. debut on April 3, so a resurgent PC business could further boost the company's share price.

Apple's shares continued their upswing on Monday, rising 51 cents, or 0.23%, to reach $219.46 shortly after market open as the Nasdaq gained 0.13%.

Apple has already been enjoying strong Mac sales, increasing the pressure on its rivals. Apple's Mac shipments climbed 33% during the first quarter, reaching 3.36 million units. This surpassed the prior quarter's then-record shipments of just over 3 million. During its first-quarter conference call, Apple said that its Mac shipments are double the PC market average.

Munster explained, however, that Apple experienced weak Mac sales in the first half of 2009, making its 2010 numbers appear particularly strong. The analyst nonetheless expects the company to ship between 2.6 million and 2.8 million Macs in its seasonally weaker March quarter, compared to Wall Street's estimate of 2.6 million.

Piper Jaffray is not the only analyst firm forecasting a major PC rebound. Goldman Sachs released its latest IT spending survey on Monday, which revealed that 40% of firms are planning to refresh their PCs this year.

"A significant PC upgrade cycle is likely to start in 2010," wrote Goldman Sachs analyst David Bailey in a note. "Our latest survey shows further momentum for corporate PCs, with H-P and Dell both gaining meaningful share of customer budgets."
1 of 2

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DELL $0.00 0.00%
AAPL $93.74 0.00%
HPQ $12.27 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs