Hold Apple on Premium Valuation (AAPL)
Posted Tue Jun 24, 10:09 am ET
by Steve Biggs, CFA
Stock analysts Zacks Equity Research are recommending investors hold on to their investments. They state that the company is benefiting from its iPod business and that there is an ‘ipod effect’ on sales of its computers, such as MacBook, and the iMac.
They see Apple has having a strong product line and the promise of new products in 2008, such as the 3G iPhone due for release on 11 July. They also see the iTunes Movie Rentals and software upgrades as adding to the mix.
despite the outlook for consumer spending in the current ‘credit crunch’ that we all know about, they see the outlook as still favourable, with a six-month target for stock at $184 (currently around the $175 mark).
You can read their report here