Forecasts of High Demand Charge PC Stocks

Computer stocks rallied Thursday as analysts said the sector’s outlook is brightening:

* Apple Computer Inc. surged 9% to a six-year closing high on optimism that new products will propel profit growth this year and next. Apple shares rose $4.63 to $54.50 on Nasdaq after a 5.3% jump the day before. The stock was raised to “buy” from long-term “attractive” by analysts at BancBoston Robertson Stephens, with a 12-month target of $75.

* Hewlett-Packard Co. vaulted $6.50 to a new closing high of $105.81 after the stock was reiterated “strong buy” by analyst Richard S. Chu at SG Cowen, with a target of $125.

* Compaq Computer Corp. shares rose 81 cents to $25.75, giving them an 11% gain this week on optimism that the plunging computer prices and management turmoil that plagued the company in the first two quarters are abating. Compaq’s stock hit a two-year low last month as the No. 1 personal computer seller shook up its leadership team.

* And Dell Computer Corp., which fell to a recent low of $33.06 on June 1, climbed $1.63 to $39.94.

“I’m bullish on PC stocks because demand trends are stronger than people think,” said Christian Koch, senior analyst at Fifth Third Bank. “We’re going into a stronger seasonal period. You usually have people buying for back-to-school and for Christmas.”