Investment firm: Macs will continue to take market share from PCs
Posted by Dennis Sellers 
Jun 25, 2008 at 9:47am
The strength of Apple’s iPod business has carried over into its computer business, and the Zachs Investment Firm expects the Mac to continue taking share from traditional PCs as consumers become more familiar with Apple products and enjoy the enhanced media capabilities.
With a strong new product pipeline for 2008, including the iPhone 3G, MacBook Air, Mac Pro, iTunes Movie Rentals, and major software upgrade and developer platform for the iPhone 3G, Zacks believes the stock deserves a premium valuation to its peer group. The new iPhone3G should drive increased share of the smartphone market.
“However, we are cautious on consumer spending going into 2008, and believe the market for AAPL’s successful iPod line to be slow over the next several years,” Zacks says. “We therefore maintain a Hold rating on AAPL shares. At its current price of $175.27 per share, Apple’s stock is trading at 33.9x our fiscal 2008 estimate of $5.17. We set our six month price target at $184.00. This represents a P/E multiple of 35.6x our fiscal 2008 estimate, which is still a premium to the industry, but more accurately reflects the current outlook.”
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Contributor
Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
