Apple iPods Still Hot

Bear Stearns raised estimates and the price target on Apple Computer
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citing stronger iPod unit growth and "less of a seasonal decline" in
hard disk drive, or HDD, iPods in the fiscal second quarter ended
March. Bear Stearns said feedback from sources, including iPod
component vendors such as Synaptics
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"seem to suggest an expectation for less than normal seasonal declines
in the HDD-based iPod business for Apple and the broader HDD music
player category for the March quarter. The research firm raised Apple's
fiscal second-quarter estimate to earnings of 48 cents per share on
revenue of $3.17 billion, from earnings of 43 cents per share on
revenue of $2.99 billion. Bear Stearns raised the fiscal 2005 estimate
to earnings of $2.25 per share from $2.10, and raised the fiscal 2006
estimate to earnings of $3.05 from $2.80. The firm, which rates Apple
at "outperform," raised the year-end price target to $97 from $87,
noting it raised the target price/earnings multiple to 27 times from 25
times, but still a discount to the 28 times for Dell
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