Digest: Apple gains; Dolby rises
Apple shares rose 3.6% on Wednesday as Wall Street looked for iPhone price cuts in Europe to further boost momentum for the hot multimedia device. Piper Jaffray analyst Gene Munster cited recent price reductions for the iPhone in Germany and the U.K. that expire in June. He took that along with U.S. inventory trends as a sign that Apple's telecom partners there are "draining the channel" to prepare for a new iPhone using advanced 3G technology. Such a new model could drive sales to new heights, Munster added. Apple shares closed up $5.32 at $153.70. The stock has traded from $89.60-$202.96 during the past year.
Dolby Laboratories shares rose sharply Wednesday after Miller Tabak analyst David Joyce upgraded them from "neutral" to "buy" thanks to the stock's "relative underperformance over the past two months versus entertainment technology provider peers." The analyst also cited comments from Intel suggesting "positive global demand" and added that "recession-driven concerns for end-user demand might be bottoming." However, Joyce now has a $41 near-term price target on Dolby shares, down from $46. The stock of the audio technology firm rose 4.2% to $35.04, giving it a market capitalization of $3.9 billion. During the past year, Dolby shares have traded from $30.56-$53.63.