The day after Apple Computer's CEO Steve Jobs used a lunchtime interview spot on CBNC to announce a cool new wireless gadget, brokerage Pacific Crest Securities is picking up coverage of the company. Analyst Steve Lidberg is starting Apple out with an Outperform rating and has a 12-month price target of $34.
Lidberg writes:
We are initiating coverage of Apple Computer with an Outperform rating. We believe Apple is becoming a leading provider of digital entertainment and media solutions. Apple's iPod and iTunes Music Store should develop into a multibillion-dollar category over the next two to three years, and its R&D initiatives should allow the company to replicate its iPod success in other product categories. These initiatives should accelerate Apple's revenue growth and profitability, as well as change the basis of competition with Dell, Hewlett-Packard and Microsoft. Our price target is $34, or 40x our calendar 2005 EPS estimate of $0.85. Market and macroeconomic conditions could interfere with the realization of this price target, as could risks such as channel disruption, supply constraints and a volatile pricing environment.
Meanwhile, Apple says its new cool gadget, Airport Express (pictured left) will be available in Canada in July for $179. It's a Wi-Fi plug that, among other things, lets you take a wireless stream from your Mac and play it through your stereo.
Scott Rosenberg has more on this at his blog.
Alex Salkever at BusinessWeek loves the Express:
BW Online | June 9, 2004 | Apple Hits a High Note with Express:
“Should the Express live up to its advance billing, Apple will make bridging the divide between computers and home stereos or wireless speakers a piece of cake for PC and Mac users alike. What impresses me most about the Express is how handily Apple has addressed multiple markets with a single product.”