According to investment bank UBS Apple is "uniquely positioned to show improvement in earnings over the next two years".
Research by the bank indicates Apple has "significantly strengthened its brand value with several strategic initiatives".
UBS analyst Ben Reitzes said: "Apple has reinvigorated its brand through digital-music players and download services, as well as most recently with a breakthrough PC [the G5] – and these offerings could drive in near-term upside to earnings and revenues."
UBS also expressed optimism regarding the growth prospects of the PowerMac G5 and the iPod and PowerBook in the forthcoming quarters.
UBS said Apple has a "very solid financial position", and that by the end of fiscal 2005 the company "could have about $4.8 billion in cash, or about $13 net cash per share".
Adobe Systems stocks rose after UBS upgraded its investment rating on the companies shares to Buy on Monday.