Analysts at Piper Jaffray are criticising Wall Street for "underestimating the power of Apple's retail strategy."

Piper Jaffray has reiterated its outperform rating on Apple as it expects the company's 2005 retail strategy to result in revenue growth.

The analysts said: "Apple plans to capture new customers in high-traffic areas via attractive storefronts. The hope is that these visitors will purchase Apple products in the future."

According to the analyst house Apple has already seen increased interest in Macs from iPod users. According to Piper Jaffray: "Last quarter's results as the first evidence that adoption of iPod has been improving underlying demand for Macs."

The analyst house also expects "the ongoing rebound in the creative pro market will impact Apple sales".

Piper Jaffray's target price for Apple is $40.

Bear Sterns analysts last week reduced their assessment on Apple stock from outperform to peer perform.