Analyst: 11% of Windows iPod users to buy a Mac
n a research note released to clients on Thursday and obtained by AppleInsider
, Needham & Co. analyst Charlie Wolf raised his target price on Apple Computer to $104 a share. The analyst reiterated his assumption that 11% of Windows users owning iPods will purchase a Mac, and notes that sales at the iTunes Music Store have accelerated to a $450 million annual run rate. "The increase in music sales in combination with a decrease in peripheral sales in our revised model raises Apple's overall gross profits because music sales are much more profitable than peripheral sales," Wolf said. I
n addition to raising its Apple price target from $83 to $104, the firm also raised its earnings per share estimates from $1.85 to $2.00 in fiscal 2005, and from $2.25 to $2.50 in 2006. Needham maintains a 'Buy' rating on Apple.