ThinkEquity Too Raised Apple Estimates

The group of firms that decide to raise Apple estimates in anticipation of future events widens every day. According to recent news, ThinkEquity has issued a note to clients yesterday expressing their confidence in Apple's power over the market.

"With the Leopard launch just around the corner, we have revisited our Apple revenue and earnings power estimates in light of the ever-larger Mac OS X user base," ThinkEquity analyst Jonathan Hoopes wrote. He also said he believes the Cupertino-based company will launch Mac OS X in the weeks to come (Prudential analyst Jesse Tortora has also expressed confidence in an early Leopard launch).

Hoopes is estimating the Mac-making company will earn $3.24 per share on sales of 24.4 billion (up from $3.06 and $23.6 billion), representing 43 percent earnings growth and 26.3 percent sales growth year-over-year.

The analyst mentions Vista and CS3 as sale boosters. Vista has established a hardware upgrade need and so will Adobe's Creative Suite 3.0 (due to be launched on March 27, available sometime this spring). New, powerful software has its resource demands, right? "We believe many creative professionals prefer waiting to waitlisting when it comes to upgrading their business-critical systems," said the analyst.

As Apple strong points, the ThinkEquity analyst mentions the successful iPod/iTunes duo (with great sales in both retail stores and iTunes online store) and all the publicity around the upcoming iPhone. Along the controversial 'Get a Mac' ad campaign, these factors will assure strong Apple sales for the near future.

ThinkEquity rates Apple (NASDAQ:AAPL) stock Buy, with a target price of $120. The trading value for Apple shares is now approaching $90.