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Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:

THE TRADER: Apple

Summary: Apple shares hit $93.50 last week, and a successful test of January's high of $97 could propel shares to the $115-125 range analysts think it's worth. While the much-awaited iPhone won't debut until the summer, Apple TV will come out any day now. For $299, it allows owners to stream PC music and video onto their television. Many analysts have not accounted for the Apple TV because of its unknown potential, but even a 'marginally successful rollout' could net it a healthy portion of the $26 billion CD/DVD market; Chris Whitmore of Deutsche Bank sees it capturing 20-30%. Barron's Mark Veverka sees a boost in Mac sales with the spring rollout of its new Leopard operating system, which includes a free copy of Boot Camp that allows Mac users to run Windows. Even in the event of a yet-unrealized U.S. economic slowdown, iPod sales would still benefit from rapid growth in Europe and Asia. And despite its rich 24 P/E multiple, shares have been and can go higher -- especially in light of a projected 20% annual growth.

Related Links: Apple TV Picture Quality Is Not Good Enough For MeApple TV: Arriving Just in Time to Give Consumers What They WantFour Reasons Why The Apple TV Might Bomb

Apple 26 03 2007

Source: Underestimated Apple TV Potential Could Propel Shares to New Highs - Barron's