) at outperform and raises its target price.
Analyst Gene Munster recently surveyed 200 iPod users. The bottom line is that 13% of iPod users were formely PC users and that following their iPod purchase, have either already bought a Macintosh or plan to buy one in the next 12 months. He believes the remarkable satisfaction with iPod creates word-of-mouth wildfire and generates new customer interest.
Munster raises his $52 target to $100, based on 37 times calendar year 2006 earnings per share, plus cash/share, vs. previous multiple of 29 times calendar year 2005 earnings per share. While it is a multiple premium to group, he believes it is warranted given the growth potential of iPod and the carryover to the core Mac business.