AAPL Apple Computer started with a Buy at Amtech; Set Target of $78

Amtech initiates AAPL with a Buy and $78 tgt, saying that while iPod
sales have been strong over the past year, they believe the mkt is
early in its adoption ramp. To date, AAPL has shipped around 6 mln
units, and they believe the TAM could be larger than 340 mln units.
Firm's checks show strong demand for iPod mini and a solid start for
the new iPod photo. They also believe that the recent additions of HPQ
as a reseller/iTunes licensee and MOT as an iTunes licensee further
AAPL's footprint and could help drive sales in future quarters. AAPL
appears positioned to grow its core computer business, namely the new
iMac G5, with its state-of-the-art G5 processor and Mac OS X operating
system. Firm believes their ests may prove conservative given iPod
momentum and the potential for Mac sales to re-accelerate with the new
iMac G5. They believe AAPL shares have potential upside to $78 based on
33x their CY06 EPS of $1.97 and adding $14 in net cash per share