Credit Suisse First Boston (CSFB) initiated coverage of Apple stock yesterday.

Analyst Robert Semple assigned a 'neutral' rating on Apple's stock, offering a target price of $35. Wall Street currently rates Apple stock with a target price between $27 (low estimate) and $40 (the highest estimate).

CSFB analyst Robert Semple - who also began coverage of Dell, which he rates at 'outperform' - told CBS News that he feels the PC industry has become a saturated market dependent on replacement for new sales.

Pointing to price competition, the analyst believes only companies with extremely efficient supply chains and distribution networks will survive, and said Dell's low-cost business model makes it strong.

Apple has its benefits too, principally from its iPod and iTunes segments. "Both are industry-leading products in new markets with significant growth potential."

Also this week:

UBS warned that G5 processor supply problems could harm Apple's third quarter prospects, adding that such woes are mitigated by Apple's music success.

Prudential Equity Group shares these concerns, offering the lowest target price of all analysts covering the stock - $27.

Piper Jaffray observes recovery in Apple's core creative markets, predicting 9 per cent Mac sales growth year-on-year.

Twenty-two analysts houses now cover Apple, with five rating it as a 'Strong Buy', seven as a 'Buy' and ten as a stock to hang onto.