Analysts at the Bank of America have raised their rating on Apple Computer.

Observing the strength of demand for MacBooks and the continued steady desire for iPods, analysts at the firm this morning raised their rating on Apple to 'Buy' from 'Neutral'.

The analysts also raised their target price on Apple stock to $79 (from $68).

They claim Apple has a chance to increase iPod sales in the second half of the year, and "noted that they are not taking into account the impact of an Apple iPhone, which it expects to be introduced in 2007," according to MarketWatch.