Wednesday, June 15,2005 @ 6:30pm
Apple shares up on Wal-Mart pact speculation
Shares of Apple got a boost today amid upbeat comments by Morgan Stanley analyst Rebecca Runkle, who said the computer maker's pact with retail giant Wal-Mart Stores may be broader than first thought. AAPL gained $1.13, or 3.1 percent, to close at $37.13. "While we don't believe Apple iPod availability at Wal-Mart is completely new news, we do think the partnership is broader than people think, in transition and set to expand in the near-term," asserted analyst Rebecca Runkle in a note to clients. Apple and the world's biggest retailer have been expanding their pact to sell versions of Apple's iPod from a test to a full partnership, marking a new development as of the last few months, according to Runkle. Runkle said that reports about mounting inventory of Apple products may be exaggerated. "In fact, we do not believe Apple has a major inventory problem," she said. "We think much of the inventory chatter resulted from inventory increases ahead of broadening retail partnerships and sell-in ahead of new product launches." The analyst maintained an overweight rating and $60 target price on Apple's stock.