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.
