Reuters is reporting that Salomon Smith Barney analyst Richard Gardner has announced that the firm has raised Apple's rating to a "Buy" from Neutral on the strength of the iMac and other recent success from Apple. Apple's recent deal with Sears for the national retailer to sell the iMac also figured in the new rating. In addition, Mr. Gardner set a new target for the stock of US$55. According to Reuters:
Price target raised from $42, and Gardner recommends that investors begin building a position in Apple shares ahead of Macworld Expo on July 21.
Gardner said a strong March quarter in iMac shipments suggests that the product has maintained good momentum. Apple began selling its iMac desktops in more than 800 Sears, Roebuck and Co.(NYSE:S - news) locations this past weekend, which Gardner believes will also boost iMac shipments. On January 15, Salomon Smith Barney had downgraded Apple, expressing concern over waning iMac momentum during the December quarter.
Apple's long-awaited consumer portable is nearing introduction, with recent articles in the trade press suggesting the product may go into production sometime in June, which would allow for an unveiling at the MacWorld Expo on July 21.
Gardner also says Salomon Smith Barney sees opportunities to boost earnings per share through a share repurchase.
This announcement follows a move by Moody's to raise the rating on Apple's bonds this past Friday, positive comments from Fred Cohen, senior analyst at Daiwa Securities , last Wednesday, as well as other very positive thoughts from Wall Street during the last few weeks. You can see our Apple Stock Watch Special Report for other stories on Apple's stock.
Apple's stock was trading at 44 15/16, up 7/8, as of this writing (1:29 PM CDT).
The Mac Observer Spin: Another analyst catching up to reality, this is another piece of great news for Apple. Salomon Smith Barney carries a lot of weight on Wall Street.
What''s even more significant is that it seems that Wall Street has been more in tune to what is really going on in the Mac world, or at least Apple's world. In the past, it seemed as if many announcements were made by Wall Street that had little bearing on reality.
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